From 1 July 2026, eligible Malaysians can buy diesel at a fixed subsidised price of RM 2.10/litre nationwide — far cheaper than the market price of RM 4.62/litre. The best part: most individuals do not need to apply at all. This guide explains how it works, who qualifies, and when you actually do need to register.
What Is BUDI Diesel?
BUDI Diesel (BUDI MADANI Diesel) is a targeted diesel subsidy for Malaysians' personal vehicles. Since 1 July 2026, it uses the same MyKad mechanism as BUDI 95: you verify eligibility with your MyKad at the station counter and pay RM 2.10/litre, regardless of the weekly market swings.
This change unifies the subsidised diesel price across the whole country. The old Sabah & Sarawak special rate has been retired — everyone now pays the same market price (RM 4.62) unless they qualify for BUDI Diesel (RM 2.10) or SKDS (RM 2.15, for commercial fleets).
Who Qualifies?
To get diesel at RM 2.10/litre, you must meet all of these conditions:
- Malaysian citizen with a valid MyKad.
- Hold a valid driving licence (LMM) — including probationary (P) and learner (L) licences.
- Personally own a private diesel vehicle registered in your name, with valid road tax (LKM).
Foreigners, foreign-registered vehicles and company vehicles are not eligible — they pay the full market price.
You Don't “Apply” — Just Use Your MyKad
This is the most important part: for the basic quota there is no form and no registration. Just like BUDI 95, eligibility is verified automatically when you present your MyKad at the counter. If the diesel vehicle is registered in your name and the road tax is valid, you qualify straight away.
The 200-Litre Monthly Quota
Each eligible individual gets a basic allocation of 200 litres a month at the subsidised price. The key thing to understand: this quota is shared with your subsidised RON 95 (BUDI 95) purchases. For example, you could use 120 litres on diesel and 80 litres on RON 95 — both are drawn from the same 200-litre monthly quota.
When You Do Need to Register (Extra Quota)
Owners of diesel pick-up trucks and SUVs who need more than 200 litres can apply for an extra 100 litres. This is the only situation that requires an application:
- Go to the official Budi Madani portal at budimadani.gov.my.
- Log in and select the additional diesel quota application.
- Fill in your vehicle details (eligible diesel pick-up / SUV).
- Submit. The extra 100 litres is granted only after approval.
Already Getting Diesel Cash Aid? It Switches Automatically
If you are an existing BUDI Diesel Individual recipient (the RM 400 monthly cash assistance), that scheme is replaced by the direct pump subsidy via MyKad. You do not need to reapply — the transfer happens automatically.
How to Buy Subsidised Diesel at the Station
- At the counter, insert your MyKad into the card reader to verify BUDI MADANI DIESEL eligibility in real time.
- Tell the cashier the amount / litres you want, the fuel type (Diesel), and the pump number.
- Pay by cash, credit card or debit card.
- Start fuelling once the cashier enables your pump.
How Much Can You Save?
At current prices, the gap between market diesel (RM 4.62) and the BUDI Diesel rate (RM 2.10) is RM 2.52/litre. If you use the full 200-litre monthly quota, that's roughly RM 504 a month — over RM 6048 a year.
The MyKad mechanism ensures the diesel subsidy reaches Malaysians who genuinely drive private diesel vehicles, not foreigners, smugglers or company fleets.