Overview
- The government will launch the Budi Madani Diesel programme on July 1, 2026, with Peninsular users given early access at RM2.15 per litre from June 27 to July 1 and the full RM2.10 per litre rate applying after the start date.
- Eligible Malaysian private vehicle owners who verify with MyKad and JPJ records will get a shared monthly quota of 200 litres for B10/B15 diesel and can view eligibility through the official Budi Madani portal.
- Owners of eligible pick-up trucks and SUVs may apply for a higher 300-litre monthly quota while the Malaysian Automotive Association has asked the government to extend the extra 100 litres to diesel MPVs.
- The policy responds to unusually high diesel sales in Sabah and Sarawak that reached about 200 million litres a month in March–April and to a surge in subsidy outlays from roughly RM700 million to as high as RM7.5 billion in early 2026; the government says the reform could cut subsidy costs by about RM2 billion a year.
- Key operational questions remain unresolved, including how subsidised supply will be financed, how petrol-station allocations and monitoring will prevent renewed leakage, and how the MyKad/JPJ e‑KYC system will be rolled out at pumps.