Kuala lumpur: The government has successfully saved approximately RM5 billion annually through the diesel subsidy rationalisation under the BUDI MADANI Diesel Programme (BUDI Diesel) since its implementation on June 10, 2024, said the Ministry of Finance (MoF).
According to BERNAMA News Agency, these savings have alleviated pressure on the country’s fiscal position, allowing funds to be reallocated for more productive purposes, including bolstering the social safety net. Measures such as enhancing cash aid, including Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA), have seen increased allocations, rising to RM13 billion under Budget 2025 from RM10 billion the previous year, and further to RM15 billion through the SARA Appreciation initiative.
The MoF detailed that the savings are also being channelled into development projects aimed at enhancing the country’s productive capacity. Over 140,000 recipients under the BUDI Individu category and 180,000 under BUDI Agri-Komoditi category have been approved, with total payouts amounting to RM430 million and RM350 million respectively.
The land transport goods vehicle segment under the BUDI MySubsidi Diesel Programme has seen 121,618 companies, involving 355,074 vehicles, approved for the use of fleet cards as of September 30, 2025. This initiative allows these vehicles to access diesel at RM2.15 per litre, ensuring that operating costs in the logistics sector do not escalate and that essential goods remain affordable.
The ministry provided this information in response to a query from Abdul Khalib Abdullah (PN-Rompin) regarding the effectiveness of targeted petrol and diesel subsidies in reducing leakages and alleviating the country’s fiscal strain. Furthermore, through the BUDI MADANI RON95 (BUDI95) initiative, which commenced in September, over 12.4 million citizens out of 16.5 million eligible individuals have benefitted from RON95 petrol priced at RM1.99 per litre, with sales surpassing RM1.85 billion or consumption exceeding 930 million litres as of October 21, 2025.
Additionally, the Ministry of Economy, in the same written reply, highlighted that the Central Database Hub (PADU) is a key reference database for the validation of targeted RON95 petrol subsidies by the MoF. Using the data available, the government can identify socio-economic intervention programmes for specific target groups, with PADU serving as a reference database for relevant government agencies.