Budi Diesel: Govt to waive ownership transfer fees, allow subsidy transfer


Using the algorithm, station owners inflated petrol by as much as US$0.22 (RM0.91) a gallon and diesel by US$0.33 (RM1.37), on top of already high prices caused by the US war with Iran, the plaintiffs alleged. — Photo by Ali Mkumbwa on Unsplash

KUALA LUMPUR: The government has announced three enhancements to the implementation of the targeted Budi Madani Diesel (Budi Diesel) subsidy system to facilitate the transition ahead of the programme's early access phase, which begins on Saturday (June 27) in Peninsular Malaysia.

The Finance Ministry said in a statement on Friday (June 26) that the enhancements were agreed upon following several engagement sessions held with the public, small traders, stakeholders and implementing agencies after the announcement of the Budi Diesel implementation on June 22.

The enhancements are the implementation of the temporary incentive programme for the exemption of vehicle ownership transfer fees for diesel vehicles for three months, beginning July 1; allowing subsidy eligibility to be transferred to the actual users of vehicles; and the expansion of Budi Diesel to cover company-owned private pick-up trucks and jeeps.

"The transition to Budi Diesel is aimed at ensuring that diesel subsidies reach eligible Malaysians, while at the same time closing loopholes that have cost the country billions of ringgit annually.

"Having listened to the feedback and appeals of the people, the government has agreed to implement these enhancements to ensure the smooth implementation of Budi Diesel," said Finance Minister II Datuk Seri Amir Hamzah Azizan.

On the temporary exemption of the fees, which can amount to as much as RM100, the ministry said the measure takes into account the implementation of Budi Diesel, which uses vehicle ownership data and active road tax records as among the eligibility criteria.

It said the measure would provide an opportunity for owners and actual users of diesel vehicles to ensure that vehicle ownership information is properly updated and aligned with actual usage.

Meanwhile, the Road Transport Department (JPJ) will open service counters on weekends from July 4 to 26, from 8am to 5pm, at all state JPJ Offices and state Urban Transformation Centre (UTC) JPJ Offices for matters related to Budi Diesel applications.

The ministry will also allow registered owners of diesel vehicles to transfer diesel subsidy eligibility to immediate family members who are the actual users of the vehicles, subject to conditions and verification requirements to be determined.

The mechanism for transferring subsidy eligibility will be announced through official Budi Madani channels once the technical details have been finalised.

In addition, the Cabinet has agreed to expand Budi Diesel to cover company-owned private pick-up trucks and jeeps, taking into account feedback from small traders and users who rely on diesel vehicles for their daily work.

The ministry said the expansion is expected to benefit users who utilise diesel-powered pick-up trucks and jeeps for small businesses, daily commuting, as well as activities in rural and interior areas, subject to stipulated conditions.

The early access phase for Budi Diesel begins tomorrow in Peninsular Malaysia, with subsidised diesel to be sold at RM2.15 per litre through MyKad verification at participating petrol stations.

Full implementation will commence nationwide on July 1, with subsidised diesel priced at RM2.10 per litre for eligible Malaysians.

Existing Budi Diesel Individu recipients who received the RM400 cash assistance earlier this month will also be able to purchase diesel at subsidised prices through MyKad verification throughout the early access period.

At the same time, more private diesel vehicle owners in Peninsular Malaysia who had previously not received Budi Diesel Individu cash assistance will gain access to subsidised diesel through Budi Diesel.

Private diesel vehicle owners may check their eligibility status and monthly quota through the official Budi Madani portal at www.budiMadani.gov.my.

Eligible owners of diesel-powered pick-up trucks and jeeps may also apply for an additional quota of 100 litres per month through the same portal.

"The government will continue to monitor the implementation of the Budi Diesel early access phase and review public feedback to ensure that the transition to the targeted diesel subsidy mechanism proceeds smoothly and that subsidy benefits reach eligible Malaysians," the Finance Ministry added. – Bernama

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