PETALING JAYA: The government is implementing additional measures, including an increase in cash assistance for diesel-powered vehicle owners, will be implemented to help the people deal with current pressures due on fuel costs, says the Finance Ministry.
In a statement on Tuesday (April 14), the ministry announced that the Padi Cultivation Incentive for the 2026 planting season has been increased from RM160 to RM300 per hectare.
"This increase involves additional funding of approximately RM40mil and is expected to benefit nearly 200,000 padi farmers, some of whom will begin planting this month.
As additional support, the Madani government also introduced a harvesting incentive of RM50 per hectare per season in 2025 to help ease rising input costs," it said.
For diesel vehicle users, cash assistance has also increased to RM400 per month for April, with the assistance being distributed on April 21. This encomposes both the Budi Agri-Komoditi and Budi Diesel individual assistance.
"These improvements are made in response to ongoing pressures in the global energy market, particularly disruptions in international petroleum supply, which have caused refined diesel prices to rise significantly to as high as US$250 (RM987.75) per barrel, which is nearly three times higher than before the West Asia conflict," it said in a statement on Tuesday (April 14).
It added that Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim emphasised that the government understands the impact of rising costs on the people and swift action has been taken to enhance targeted assistance, especially for padi farmers, agricultural workers, smallholders and eligible individual diesel vehicle owners.
"This marks the second increase in aid provided following the crisis.
The Budi Agri-Komoditi is expected to benefit more than 200,000 farmers and smallholders, with additional funding of around RM20mil per month. The Budi Diesel Individu is expected to benefit about 150,000 vehicle owners in Peninsular Malaysia, with additional funding of around RM15mil per month," it said.
A total of RM7bil from the subsidies is expected to be bore by the government including an additional RM75mil from the assistance initiatives.
"In addition, the Government has agreed to facilitate diesel purchases for non-vehicle use. The requirement for a special permit for purchases exceeding 20 litres will be relaxed. Owners of agricultural machinery or equipment will be allowed to purchase diesel beyond this limit by presenting machine registration and the government will provide detailed implementation guidelines in the near future.
