PUTRAJAYA: Nearly 200,000 owners of diesel-powered pickup trucks and sport utility vehicles (SUVs) have been approved to receive an additional 100 litres of subsidised diesel per month under the BUDI MADANI Diesel (BUDI Diesel) programme.
The Finance Ministry said the additional allocation, effective from July, increases the monthly subsidised diesel quota from 200 litres to 300 litres for eligible recipients.
As of July 4, a total of more than 174,000 eligible Malaysians in Peninsular Malaysia and over 22,000 in Sabah, Sarawak and the Federal Territory of Labuan had been approved for the additional allocation.
The ministry said the increase was introduced in recognition of the higher diesel consumption among pickup truck and SUV owners, many of whom use their vehicles for small and medium-sized businesses as well as travel to rural and remote areas.
Finance Minister II Senator Datuk Seri Amir Hamzah Azizan said the government understood that diesel-powered pickup trucks and SUVs were not merely used for daily commuting, but also served as essential vehicles for earning a living and supporting family needs.
"That is why this additional 100-litre allocation is being provided. We hope it will help recipients better manage their monthly diesel requirements," he said in a statement today.
Amir Hamzah said the government had also taken into account public feedback regarding diesel vehicles used by immediate family members or vehicles whose ownership records had yet to be updated.
Under the improved mechanism, the original BUDI Diesel recipient may apply to transfer eligibility to an immediate family member through the official BUDI MADANI portal, subject to the stipulated conditions and verification process.
Alternatively, the actual user of the diesel vehicle may update the vehicle ownership records with the Road Transport Department (JPJ).
To facilitate the process, the government has waived ownership transfer fees for diesel vehicles for three months beginning July 1.
"This improvement shows that the implementation of BUDI Diesel will continue to be monitored and refined based on public feedback to ensure the subsidy reaches eligible recipients without creating opportunities for leakages and smuggling," he said.
The ministry said owners of diesel-powered pickup trucks and SUVs could apply for the additional 100-litre monthly allocation and submit eligibility transfer applications through the official BUDI MADANI portal.
As of July 4, more than 2,000 eligibility transfer applications had been received through the portal.
The ministry said BUDI Diesel uses MyKad to verify citizenship and eligibility, ensuring subsidised diesel is channelled only to eligible Malaysians, while non-citizens and ineligible parties are required to purchase diesel at the unsubsidised price.
Between the programme's early access phase on June 27 and July 4, more than 336,000 diesel transactions were recorded, involving the purchase of 12.6 million litres of subsidised diesel.
During the same period, the MADANI government spent more than RM23 million on diesel subsidies.
The ministry said subsidised diesel was sold at RM2.15 per litre during the early access period before the full implementation of BUDI Diesel on July 1, when the subsidised price was reduced to RM2.10 per litre.
Amir Hamzah said the targeted subsidy initiative was designed to ensure government assistance reached eligible Malaysians while safeguarding subsidised diesel supplies from abuse.
He said BUDI Diesel was not intended to deny assistance to deserving recipients but to ensure subsidies were distributed according to actual needs while closing loopholes that had enabled leakages and diesel smuggling, which had cost the country billions of ringgit annually.
The government, he added, would continue monitoring the implementation of BUDI Diesel and reviewing feedback from the public and industry to ensure the targeted subsidy remains effective and reaches those who genuinely qualify.
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