You own a diesel pickup and run a small business — deliveries, contract work, or a mobile service. Since 1 July 2026, market diesel costs RM 4.62/litre, but two subsidy schemes can bring that down: BUDI Diesel (RM 2.10/litre, for individuals) and SKDS (RM 2.15/litre, for commercial vehicles). One vehicle can only be under one scheme — so which one fits you? This guide helps you decide.
The Two Schemes at a Glance
| Aspect | BUDI Diesel | SKDS |
|---|---|---|
| Rate | RM 2.10/litre | RM 2.15/litre |
| Eligibility | Individual citizens; private diesel vehicle in your own name | Eligible commercial vehicles (goods / public transport), registered under a business |
| How to apply | No application for the basic quota — just use your MyKad at the counter | Register on the MySubsidi portal (KPDN), then apply for a Fleet Card |
| Monthly quota | 200 litres (shared with BUDI 95) + extra 100 litres for pickups/SUVs | Set by KPDN based on vehicle category & operational needs |
| Payment mechanism | MyKad verified at the counter, pay by cash/card as usual | Fleet Card from your chosen fuel company |
Both rates are confirmed in the Ministry of Finance press release on the nationwide diesel subsidy restructuring from 1 July 2026, which also extended SKDS to Sabah & Sarawak.
Who Qualifies for BUDI Diesel?
BUDI Diesel is an individual subsidy. You qualify if you are a Malaysian citizen with a MyKad, hold a valid driving licence, and the diesel vehicle is registered in your personal name with valid road tax. There is no form for the basic quota — eligibility is verified automatically when your MyKad is scanned at the station counter.
The basic quota is 200 litres a month, shared with subsidised RON 95 (BUDI 95) purchases. Owners of diesel pickups and SUVs can apply for an extra 100 litres via the budimadani.gov.my portal — important for small traders who drive a lot. Full details in our guide: How to Apply for BUDI Diesel.
Who Qualifies for SKDS?
SKDS (Skim Kawalan Diesel Subsidi, the Subsidised Diesel Control Scheme) is the commercial subsidy. It is open to diesel vehicles registered for commercial use — typically under an SSM-registered business — in the permitted categories: cargo lorries, refrigerated lorries, delivery vans, and other goods and public transport vehicles. You can check the categories on the KPDN MySubsidi portal.
The SKDS quota is not fixed at 200 litres — KPDN approves a monthly quota based on your vehicle category and operational needs. The subsidy is delivered through a Fleet Card, not MyKad. Note: public land transport such as stage buses, school buses and express buses keeps the lower RM 1.88/litre rate under SKDS 1.0.
Decision Guide: Follow the Vehicle Registration
The simplest deciding factor is your vehicle grant (geran):
- Vehicle in your personal name (e.g. a Hilux registered to you, even if used for business) → you belong in BUDI Diesel. Use your MyKad straight away, and apply for the extra 100-litre quota if needed.
- Vehicle under a company / SSM business name with commercial registration → that vehicle is not eligible for BUDI Diesel. Your route is SKDS via MySubsidi + a Fleet Card.
- Using more than ~300 litres a month? Consider registering the vehicle commercially and applying for SKDS — the BUDI Diesel quota is capped, while the SKDS quota follows your actual operational needs.
Can You Switch or Hold Both?
One vehicle = one scheme. A commercial vehicle approved under SKDS cannot get the BUDI Diesel rate via MyKad, and a private vehicle cannot get a Fleet Card. But one person can live in both worlds: your personal pickup runs on BUDI Diesel while your company lorry runs on SKDS. If you re-register a vehicle from private to commercial (or the other way), the applicable scheme changes with it — update your MySubsidi records or make sure the new grant is in order before you refuel.
Cost Worked Example: 600 L Fleet vs 200 L Individual
Solo trader (BUDI Diesel, 200 litres/month): your cost is 200 × RM 2.10 = RM 420 — saving RM 504 versus market price. With the pickup top-up quota (300 litres), the saving rises to about RM 756 a month.
Registered business (SKDS, 600 litres/month): cost is 600 × RM 2.15 = RM 1290 versus RM 2772 at market price — saving RM 1482 a month, over RM 17784 a year.
The crossover matters: if you burn 600 litres a month but stay on BUDI Diesel, only the first 200 litres are subsidised — the remaining 400 litres at RM 4.62 bring the total to RM 2268. Under SKDS the same volume costs RM 1290 — RM 978 cheaper every month. For high-volume users, SKDS's 5-sen-higher rate is irrelevant; the bigger quota is what decides it.
The real difference between BUDI Diesel and SKDS isn't the 5 sen on the rate — it's the quota. BUDI protects individuals; SKDS protects business operations that burn hundreds of litres a month.
How to Apply for Each
BUDI Diesel: no application for the basic quota — just use your MyKad at the counter. For the extra 100 litres (pickups/SUVs), apply at budimadani.gov.my. Step by step: our BUDI Diesel guide.
SKDS: register your business and list your vehicles on MySubsidi, wait for KPDN quota approval, then apply for a Fleet Card with your chosen fuel company. The flow closely mirrors the commercial petrol scheme — see our SKPS guide for a walkthrough of the same MySubsidi + Fleet Card process.