Kuching: The government has announced an expansion of the BUDI MADANI Diesel (BUDI Diesel) eligibility transfer facility, allowing registered owners of private diesel vehicles to transfer their eligibility to any eligible actual user, effective immediately. Previously, this transfer was limited to immediate family members.
According to BERNAMA News Agency, Prime Minister Datuk Seri Anwar Ibrahim emphasized that this change responds to the grievances of pickup and jeep owners, an issue particularly prevalent in Sabah and Sarawak. As a result, the government has increased the subsidised diesel limit to 400 litres per month. Anwar made these announcements during the national-level Malaysia Day 2026 celebrations at the Borneo Convention Centre Kuching (BCCK).
Additionally, the Prime Minister noted that registered owners of more than one private diesel vehicle could transfer the monthly BUDI Diesel eligibility of those vehicles to a maximum of three other vehicles. This transfer is subject to an appeal application.
The Malaysia Day celebration, themed 'Malaysia MADANI: Kesejahteraan Dinikmati', was attended by notable figures, including the Yang Dipertua Negeri of Sarawak, Tun Dr Wan Junaidi Tuanku Jaafar, Sarawak Premier Tan Sri Abang Johari Tun Openg, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, and Sabah Chief Minister Datuk Seri Hajiji Noor.
Meanwhile, the Finance Ministry (MOF) clarified in a statement that approved recipients would receive their own monthly eligibility to purchase subsidised RON95, subsidised diesel, or a combination of both without any change in vehicle ownership. Registered owners can transfer their eligibility to any Malaysian citizen holding a valid MyKad who qualifies for BUDI95 and is the actual user of the designated vehicle.
The MOF further explained that registered owners with multiple private diesel vehicles could transfer the monthly eligibility of those vehicles to a maximum of three individuals. However, if all diesel vehicles are transferred, the registered owner will only be eligible for the BUDI95 subsidy.
For those interested in applying under the new rules, applications can be made via the BUDI MADANI portal, at Inland Revenue Board (LHDN) offices, or nearby petrol stations. To enable the eligibility to be used starting the 1st of the following month, applications must be submitted by the 27th of the current month.
The MOF added that all pending transfer applications as of September 15 will be returned to applicants, and those wishing to transfer eligibility must submit a new application starting September 16 under the new policy rules. Further information can be obtained from the BUDI MADANI Call Centre.