PUTRAJAYA: The government will provide a basic quota of 200 litres of subsidised diesel at RM2.10 per litre under the Budi Madani Diesel (Budi Diesel) programme, says Datuk Seri Amir Hamzah Azizan.
At a briefing on the diesel subsidy on Monday (June 22), Finance Minister II said the decision followed a review conducted under the Budi Madani RON95 (Budi95) programme.
"Based on available statistics, nearly 90% of drivers in Malaysia consume less than 200 litres of fuel per month.
"This entitlement may be used flexibly according to the recipient's actual needs for purchasing subsidised diesel or subsidised RON95, subject to their remaining monthly quota.
"This approach ensures that subsidies are provided to eligible recipients based on their actual fuel consumption, regardless of whether they use diesel or RON95.
"It also gives recipients the flexibility to manage their fuel usage according to their monthly requirements," he said.
The Finance Ministry said the nationwide implementation of the subsidised diesel pricing mechanism would be carried out through a MyKad-based system, similar to Budi95.
Amir Hamzah said eligible diesel vehicle owners would be entitled to a corresponding monthly quota of 200 litres of subsidised petrol, as diesel vehicle users often have different usage patterns.
"Some individuals use diesel-powered vehicles such as jeeps, vans and other vehicles that are not registered for business purposes but may require higher fuel consumption than typical RON95 vehicle users.
"This ensures that the subsidy framework is applied fairly while recognising the differences between petrol and diesel vehicle usage," he said.
He added that the government would allow eligible diesel users who own qualifying jeeps and pickup trucks to apply for an additional allocation of 100 litres, bringing their total entitlement to up to 300 litres per month.
"The applicant must own a privately registered diesel vehicle in their name and possess a valid driving licence and vehicle licence.
"The quota is expected to be adequate, as an estimated 95% of diesel users consume less than 300 litres per month.
"The additional allocation is intended to help meet the higher fuel requirements of certain groups, particularly micro, small and medium enterprises (MSMEs), as well as individuals who commute from rural and remote areas.
"In addition to private diesel vehicle owners, the Budi Diesel facility, which allows eligible recipients to purchase subsidised diesel at RM2.10 per litre using their MyKad, will also be extended to groups such as riverboat operators and owners of generators in remote areas.
"In this regard, the federal government is working closely with the Sabah and Sarawak state governments to ensure comprehensive access to subsidised diesel for the rakyat," he said.
He added that applications could be submitted through the designated system on the official Budi Madani website.
