Starting July 2026, subsidised diesel will be priced at RM2.10 per litre across Malaysia. Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim shared this update while on a visit to Bintulu, Sarawak, on 21 June 2026.
MyKad Verification Now Required for Diesel, Mirroring BUDI95
The lower price comes with a new condition: buyers will need to confirm their eligibility, either through MyKad or via approved digital payment platforms like Setel, following the same model already used for the BUDI MADANI RON95 programme.
This is a significant shift for Sabah and Sarawak, where subsidised diesel has historically been open to everyone. Going forward, only verified MyKad holders in those states will qualify for the subsidised rate.
BUDI Diesel Folded Into BUDI95
The standalone BUDI Diesel scheme is being absorbed into BUDI95. Those currently getting the RM400 monthly BUDI Diesel Individual cash payout will be shifted over to the new combined system automatically.
A trial run begins on 27 June 2026, opening up BUDI Diesel access to qualifying private diesel vehicle owners in Peninsular Malaysia. Approved users get a monthly allowance of up to 200 litres but this amount isn't separate from their existing BUDI95 fuel allocation. According to the press release, the two share the same pool.
Pick-Up and SUV Owners Can Apply for 100 Extra Litres
Drivers of diesel pick-ups and SUVs have the option to request a top-up of 100 litres on top of the standard quota, provided they meet certain conditions. Applications go through either an online portal or in person at LHDN offices and Urban Transformation Centres.
From 22 June 2026 onward, private diesel vehicle owners can log into the BUDI MADANI website (www.budimadani.gov.my) to confirm their eligibility and see their quota.
A Price Not Seen Since Early 2021
Diesel hasn't dipped below RM2.10 a litre since late January 2021 — though it went even lower during the pandemic, dropping to roughly RM1.40 in April 2020.
At present, drivers in Peninsular Malaysia pay RM4.37 per litre, while those in Sabah and Sarawak pay RM2.15. Once the new RM2.10 rate takes effect, it'll mark the cheapest diesel has been in over five years.
