The government has expanded the Budi Madani Diesel (BUDI Diesel) transfer facility, allowing eligible diesel vehicle owners to transfer their diesel subsidy entitlement to the actual user of the vehicle. The new rule took effect on 16 September 2026.

Previously, BUDI Diesel transfers were limited to close family members. Under the new system, the entitlement can be transferred to any eligible, up to 3 Malaysian citizen with a valid MyKad who actually uses the designated vehicle.

BUDI Diesel entitlement can be shared among up to 3 individuals

The new rules allow a registered owner with multiple eligible diesel vehicles to transfer the entitlement for up to three vehicles to other eligible individuals.

For example, if a person owns four eligible diesel vehicles, they can retain the entitlement for one vehicle while transferring the other three to their wife, child or employee, provided those individuals are the actual users. This allows up to four diesel entitlement users: the registered owner and three recipients.

Each recipient receives the monthly litre entitlement associated with the owner of the vehicle assigned to them.

Transferring BUDI Diesel entitlement does not create extra litres

The transfer itself does not increase the amount of subsidised diesel available. Instead, the recipient gets the same litre entitlement associated with the designated vehicle, based on its vehicle type.

For an eligible diesel jip or pick-up, the registered owner can separately apply for an additional 100 litres per month. If approved, this additional entitlement will also be available to the designated recipient. The recipient cannot apply for the extra 100 litres themselves.

BUDI Diesel transfer is permanent

A BUDI Diesel entitlement can only be transferred once for each eligible vehicle. Once approved, the transfer is final and the recipient cannot transfer it to another person. There are also circumstances where the entitlement can return to the registered owner. This includes cases where the recipient later becomes independently eligible for BUDI Diesel.

The transferred entitlement can also be cancelled if the original owner sells or transfers ownership of the vehicle and consequently loses their BUDI Diesel eligibility.

Applications open from 16 September 2026

Applications can be submitted through the BUDI MADANI portal or at LHDN offices. Applications submitted by the 27th of a month can be processed for the entitlement to become available from the first day of the following month, subject to verification and approval.

In short, BUDI95 follows the individual, while BUDI Diesel eligibility is tied to the eligible diesel vehicle. The new transfer facility allows that vehicle-based diesel entitlement to be used by the person who actually drives the vehicle.

Sumber: Kementerian Kewangan Malaysia