If you own a diesel vehicle or are planning to buy one, understanding the BUDI Diesel program can help you make informed decisions about your fuel expenses. Introduced as part of Malaysia’s diesel subsidy rationalisation, the program provides targeted assistance to eligible diesel vehicle owners while ensuring government support reaches those who rely on diesel the most.
Here’s what you need to know about BUDI Diesel, how it works, who is eligible, and how it may affect you.
What Is BUDI Diesel?
BUDI Diesel is a targeted diesel subsidy program introduced by the Malaysian government following the rationalisation of diesel subsidies. Instead of subsidising diesel prices for all consumers, the program provides eligible recipients with subsidised fuel directly when they refuel.
How Does BUDI Diesel Work?
Under the current implementation, eligible recipients receive a shared monthly subsidy quota of 200 litres that can be used for both diesel and RON 95 petrol. This allows drivers who own different vehicle types to decide how they want to utilise their monthly allocation based on their driving needs.
For example, if you own both a diesel pickup truck and a petrol passenger car, you can split the 200-litre quota between diesel and RON 95 instead of using it for just one fuel type.
Eligible owners of diesel pickup trucks and SUVs who rely on their vehicles for work or regular rural travel may also apply for an additional 100 litres of subsidised diesel each month, bringing their total monthly allocation to 300 litres, subject to the program’s eligibility requirements.
Which Diesel type does BUDI Diesel Apply To
In Peninsular Malaysia, the BUDI Diesel program applies to Euro 5 B10 diesel, which eligible recipients can purchase at the subsidized price of RM2.10 per liter within their approved monthly quota by using their MyKad at participating petrol stations.
Some stations in Peninsular Malaysia also offer Euro 5 B7 diesel, which is commonly recommended for certain European diesel vehicles. However, B7 diesel is not covered under the BUDI Diesel, so drivers who choose B7 will pay the prevailing retail price according to the market rate.
In Sabah, Sarawak, and Labuan, diesel pricing works differently from Peninsular Malaysia. Instead of receiving a targeted subsidy through the BUDI Diesel, diesel continues to be sold at a government-regulated price under the existing subsidy system. This means drivers in these regions do not need to use MyKad or apply for BUDI Diesel to enjoy subsidized diesel prices, as the subsidy is already reflected in the fuel price at the pump.
For most diesel vehicles commonly seen on Malaysian roads, such as the Toyota Hilux, Isuzu D-Max, Mitsubishi Triton, Ford Ranger, and many diesel SUVs, Euro 5 B10 diesel is generally suitable, provided it meets the manufacturer’s fuel recommendations. If you’re unsure whether your vehicle uses diesel, simply check the label on the fuel filler cap, as it usually indicates the recommended fuel type. You can also refer to your owner’s manual or consult your vehicle manufacturer if you’re still unsure before refueling.
How Does BUDI Diesel Affect You?
The impact of BUDI Diesel depends on whether you own a diesel vehicle and whether you qualify for the program.
If You Own Both Petrol and Diesel Vehicles
If you qualify for BUDI Diesel, you can purchase diesel at the subsidised rate of RM2.10 per litre within your monthly fuel quota. This can help make your day-to-day driving more manageable, especially if you rely on your vehicle for work, family commitments, or frequent travel.
The shared 200-litre monthly quota also gives you greater flexibility if your household owns more than one type of vehicle. For example, if you drive a diesel pickup truck for work but your family also owns a petrol car for daily errands, you can split the quota between diesel and RON 95 based on how each vehicle is used that month.
If you own an eligible diesel SUV or pickup truck and depend on it for work, business, or regular rural commuting, you may also qualify for an additional 100 litres of subsidised diesel each month, subject to the programme’s eligibility requirements.
If You Do Not Own a Diesel Vehicle
If you drive a petrol, hybrid, or electric vehicle, BUDI Diesel generally has no direct impact on your personal fuel expenses. You can continue refuelling your vehicle as usual without needing to apply for the programme.
However, diesel plays an important role in transporting goods across Malaysia. As many logistics vehicles and commercial transport fleets run on diesel, changes in operating costs may gradually influence the prices of certain products or services over time. While these effects may not be immediately noticeable, they can indirectly affect everyday consumers.
Does It Change How I Pump My Petrol Or Diesel?
For most people, refuelling remains a familiar experience. You will continue visiting your preferred petrol station and filling up your vehicle as usual.
The main difference is for drivers who are eligible for BUDI Diesel. Instead of receiving assistance through a separate cash payment, the subsidy is applied directly when you refuel using your MyKad.
Looking for a Diesel vehicle?
If you’re considering a diesel vehicle for long-distance travel or commercial use, explore a wide selection of quality-inspected diesel vehicles at carsome.my
More Benefits When You Buy with CARSOME
-
- Quality affordable cars from just RM199/month
- Over 3,000 choices with Malaysia’s largest used car selection
- Nationwide service coverage
- 24/7 roadside assistance at 1800-82-3388
- Instant financing approval
Terms and Conditions apply.
