Govt to beef up padi, diesel aid

Targeted assistance to cushion impact from global energy market pressures

PETALING JAYA: Additional assistance, including higher cash support for diesel users in the agricultural sector and private individuals, will be provided to offset rising fuel costs, says the Finance Ministry.

It said the government is taking immediate steps to enhance assistance to diesel users to ease their burden while ensuring economic activities continued smoothly.

The ministry said these improvements were in response to ongoing pressures in the global energy market, especially disruptions in international petroleum supply, which have caused refined diesel prices to rise signi­ficantly to as high as US$250 (RM987.75) per barrel.

“This is nearly three times ­higher than before the start of the Middle East conflict,” it said in a statement yesterday. 

The ministry said Prime Minister Datuk Seri Anwar Ibrahim has emphasised that the government understood the direct impact of rising costs to the people with swift action taken to enhance targeted assistance, mainly to padi farmers, agricultural workers, smallholders and eligible indivi­dual diesel vehicle owners.

For padi farmers, the ministry disclosed that the Padi Cultivation Incentive for the 2026 planting season was 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, with some to begin planting this month.

“As additional support last year, the Madani government also introduced a harvesting incentive of RM50 per hectare per season to help ease rising input costs,” it said. 

For diesel vehicle users, cash assistance has been increased to RM400 per month for April, with it to be distributed on April 21. This encompasses both the Budi Agri-Komoditi and Budi Diesel Individu assistance. 

“This marks the second increase in aid following the crisis. 

“The Budi Agri-Komoditi is expected to benefit more than 200,000 farmers and smallhol­ders, with additional funding of about RM20mil per month.

“The Budi Diesel Individu is expected to benefit about 150,000 individual diesel vehicle owners in Peninsular Malaysia, with additional funding of about RM15mil per month,” it said.

The ministry said a total of RM7bil in subsidies was expected to be borne by the government for the month, which includes an additional RM75mil in assistance initiatives aimed at supporting diesel users amid rising global fuel prices.  

“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.

“The Madani government, through the National Economic Action Council, will continue to monitor developments in the Middle East and its impact on Malaysia and stands ready to take appropriate measures to assist affected groups and stabilise the economy,” it added.