MALAYSIA'S new targeted diesel subsidy system rolled out nationwide on July 1, replacing monthly cash assistance with direct fuel subsidies at the pump, and the question of who exactly qualifies has been on many drivers' minds.
For households where the diesel vehicle is registered under one family member but driven by another, the answer matters a great deal.
Can a Budi Diesel fuel subsidy allocation actually be transferred to another person?
Verdict:
TRUE, BUT
Budi Diesel is the government's targeted diesel subsidy programme under the broader Budi Madani initiative, introduced to ensure that subsidised diesel reaches eligible Malaysians rather than being absorbed through leakages or used by non-citizens.
Under the programme, eligible Malaysians receive a basic monthly allocation of 200 litres of subsidised fuel, which can be used for either diesel at RM2.10 per litre or RON95 petrol, verified through MyKad at the pump.
To qualify for Budi Diesel, an individual must be a Malaysian citizen with a valid MyKad and driving licence, and must personally own a diesel vehicle registered in their own name with a valid road tax.
That last condition is where many families run into a snag. In households where a diesel vehicle is registered under one family member but regularly driven by another, the actual daily user would not qualify for the subsidy even if they meet every other requirement.
To address this, the Finance Ministry has introduced a Budi Diesel eligibility transfer mechanism, allowing the subsidy allocation to be moved from the registered vehicle owner to an immediate family member.
The transfer is available to spouses, parents, children and siblings, but the receiving family member must also be eligible for BUDI95 in their own right.
Crucially, what transfers is the Budi Diesel eligibility only. Vehicle ownership remains unchanged, meaning no ownership paperwork needs to change hands for the transfer to take effect.
Where the vehicle owner has also qualified for an additional 100-litre monthly allocation, for owners of pickup trucks and certain sport utility vehicles, that additional entitlement transfers along with the main allocation where applicable.
However, there are two firm conditions attached to the transfer that applicants should be aware of before proceeding.
The application can only be made once, and any approved transfer cannot be reversed to return the eligibility to the original owner.
Applications are made through the Budi Madani portal at www.budimadani.gov.my by logging in, selecting the Budi Diesel Eligibility Transfer Application menu and completing and submitting the required information.
For Phase 1, applications must be submitted by July 12, with eligibility status available to check from July 15.
For subsequent months, applications must be submitted by the 27th of the month, with eligibility taking effect from the first of the following month.
Also, for those whose diesel vehicle is still registered under someone who is not an immediate family member, the government has introduced a separate measure that may help.
The vehicle ownership transfer fee for diesel vehicles has been waived entirely from July 1 to Sept 30, making it easier and cheaper for Malaysians to update vehicle registration to their own name and thereby qualify for Budi Diesel directly.
To assist with the paperwork, the Road Transport Department will open its counters on weekends from July 4 to July 26, from 8am to 5pm, at all state Road Transport Department offices and state Road Transport Department Urban Transformation Centres nationwide.
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