The price of subsidised diesel for Malaysians is set to be lowered to RM2.10 per litre nationwide from July 1, 2026. When it begins, Malaysian citizens with a valid identity card (MyKad) and driving licence (LMM) owning a privately-owned diesel vehicle with a valid road tax (LKM) will be able to access subsidised B10/B15 diesel at RM2.10 per litre under the Budi Madani Diesel (Budi Diesel) scheme.
Ahead of that, those in Peninsular Malaysia will get an early access of sorts by paying RM2.15 per litre – the same amount as it is currently in Sabah, Sarawak and Labuan – for a short window, from June 27 until the RM2.10 per litre pricing starts on July 1.
As highlighted earlier, subsidised diesel will be available at a monthly quota of 200 litres, shared with RON 95 petrol under Budi95. The subsidised price will only apply to B10/B15 diesel, as B7 diesel will remain unsubsidised and will continue following the prevailing market rate for the fuel as it goes along, in an approach similar to that for petrol, where RON 95 is subsidised for Malaysians under Budi95, while RON 97 is not.
The programme opens up access to the subsidised fuel for eligible private diesel vehicle users, including those who previously did not receive the Budi Diesel Individual cash assistance. In a further expansion to that, the finance ministry now says that the Budi Diesel scheme will be extended to company-owned private vehicles of pick-up and jip body types.
In a statement issued earlier tonight, the ministry said that after taking into account the feedback and appeals of small traders and diesel vehicle users for daily work purposes, the cabinet has agreed to extend Budi Diesel to these company-owned private vehicles (of pick-up and jip body types). It said this extension is expected to benefit users who use diesel pick-ups and jeeps for small businesses, daily travel and activities in rural or inland areas, subject to the specified conditions.
Vehicle owners in this category can review and apply through the official Budi Madani portal at www.budimadani.gov.my after the application system has been updated. The government has already indicated that it has not set a deadline for Budi Diesel applications, saying this is to ensure that all eligible owners of diesel vehicles can benefit from the fuel subsidy programme.
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