Johor: The automatic implementation of BUDI MADANI Diesel (BUDI Diesel) is believed to be able to curb the leakage of diesel subsidies at the country's borders, especially in Sabah and Sarawak which previously received subsidies in bulk. Deputy Minister of Domestic Trade and Cost of Living Datuk Dr Fuziah Salleh stated that the new approach ensures that only vehicle owners registered in the BUDI Diesel system are eligible to purchase subsidised diesel at RM2.10 per litre, effectively closing loopholes for subsidy abuse.
According to BERNAMA News Agency, previously, private diesel vehicle owners had to register their vehicles under the BUDI MADANI programme to qualify for RM400 per month assistance to cover diesel costs. Dr Fuziah highlighted that across the Peninsula, approximately 400,000 privately owned vehicles use diesel, while in Sabah and Sarawak, about 300,000 vehicles are registered. Now, only those registered under the BUDI Diesel system will receive the subsidy at the specified rate, which is expected to indirectly curb leakage at the borders, especially in Sabah and Sarawak.
Fuziah, after inspecting the implementation at a petrol station in Bandar Dato' Onn, emphasized that the automatic implementation would ensure assistance is more targeted to deserving groups without compromising public welfare. Johor Ministry of Domestic Trade and Cost of Living (KPDN) director Lilis Saslinda Pornomo was also present at the inspection.
The Ministry of Finance (MOF), in a statement on Tuesday, reported that about 700,000 private vehicle owners nationwide are benefiting from subsidised diesel through BUDI Diesel, which commenced yesterday. The implementation is projected to benefit around 400,000 private diesel vehicle owners in Peninsular Malaysia and another 300,000 in Sabah, Sarawak, and the Federal Territory of Labuan.
According to MOF, this implementation represents a significant expansion compared to the previous BUDI Diesel Individu, which involved only about 180,000 recipients of monthly cash assistance in Peninsular Malaysia to offset partial diesel costs at market prices.