Cover image via Mohd Rasfan/AFP & Kementerian Kewangan
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The government has increased interim cash assistance under its BUDI Diesel programme by RM100, bringing the total monthly payout to RM300 — a move aimed at cushioning the impact of rising global diesel prices on eligible Malaysians
The top-up, which took effect on 17 March, applies to recipients under two categories: BUDI Diesel Individu, which covers private diesel vehicle owners, and BUDI Diesel Agri-Komoditi, which includes registered smallholders and farmers operating diesel-powered agricultural machinery.
The announcement comes as diesel prices in Peninsular Malaysia rose to RM5.52 per litre as of 26 March — up from RM4.72 previously — under the government's managed float system. The current price is effective until 1 April, after which it may be revised depending on global market conditions.
Who qualifies
Under normal conditions, the BUDI Diesel programme pays out RM200 monthly to eligible recipients.
For BUDI Diesel Individu, applicants must be Malaysian citizens with an annual household income of RM100,000 or below, and own a privately registered diesel vehicle in Peninsular Malaysia with valid road tax.
Vehicles owned by companies, e-hailing drivers, diesel motorcycles, and luxury vehicles under 10 years old are not eligible.
For the agricultural category, BUDI Diesel Agri-Komoditi is open to farmers and smallholders registered with either the Ministry of Agriculture and Food Security or the Ministry of Plantation and Commodities.
Applicants must have annual agricultural sales between RM50,000 and RM300,000, and land holdings generally below 4.5 hectares for palm oil and rubber, or 2.5 hectares for cocoa, pepper, and kenaf.
It is worth noting that Sabah and Sarawak remain outside the managed float system and are currently unaffected by the diesel price changes that prompted this top-up.
A man fills diesel in a lorry at a Petroleum Sarawak Berhad station on 20 June, 2025.
Image via Mohd Rasfan/AFPThe BUDI Diesel programme is part of the government's broader targeted subsidy strategy
It replaces blanket fuel subsidies with direct cash transfers to specific eligible groups.
The March top-up reflects the government's stated commitment to protecting lower-income households and smallholders from cost-of-living pressures tied to external factors like global oil price movements.
Whether the RM300 rate will be extended beyond March will likely depend on where diesel prices land after the 1 April review.
Key points
- BUDI MADANI diesel aid: Increased from RM200 to RM300 for March 2026 to cushion the price surge.
- Extra RM100 top-up: Effective from 17 March and currently being disbursed to recipients.
- Eligibility: Applies to both individual vehicle owners and small-scale farmers (Budi Individu & Agri-Komoditi).
- Diesel price (Peninsular Malaysia): Now at RM5.52 per litre after an 80-sen jump.
- Validity: This price remains until 1 April, pending the next weekly revision.
