Explained: What does transferring BUDI Diesel eligibility to the actual user mean?

The Malaysian government has revised the BUDI Diesel program, allowing registered owners of private diesel vehicles to transfer their eligibility to actual users. This change, announced by Prime Minister Anwar Ibrahim on September 16, enables non-family members to benefit from subsidized fuel, including those in Sabah and Sarawak who rely heavily on diesel for work and travel.

Under the new rule, eligibility is no longer restricted to the vehicle’s registered owner, which includes the spouse, parents, children, or siblings. Instead, any actual user of the vehicle can qualify for the subsidy. The monthly quota for standard diesel vehicles is 300 litres, while pickups and jeeps can receive up to 400 litres, which may be used for subsidised RON95 petrol, diesel, or a combination.

To receive the transfer, the recipient must be a Malaysian citizen with a valid MyKad, meet BUDI95 criteria, and personally use the diesel vehicle. The application process involves a formal submission through the BUDI Madani portal or at an Inland Revenue Board (LHDN) office, with applications due by the 27th day of the current month for use the following month.

The change aims to reduce subsidy leakage, improve subsidy targeting, and better collect data on actual diesel consumption, especially in rural areas where actual use often doesn't match vehicle ownership records.