Diesel is now RM3.35, but these cars qualify for RM200/month Budi Madani rebate


Diesel is now RM3.35, but these cars qualify for RM200/month Budi Madani rebate

As you may already know, the price of diesel as of exactly 12:00 midnight last night has increased to RM3.35/litre from the government-subsidised price of RM2.15/litre previously in place since 2021, marking an increase of RM1.20 per-litre.

It’s worth noting that this price adjustment only applies, at least for now, to Peninsula Malaysia, with Sabah and Sarawak (and Labuan) spared the price increase to a later date.

The Ministry of Finance are quick to point out that, even at this elevated pricing of RM3.35/litre, diesel fuel in Malaysia is the cheapest in Southeast Asia, second only to Brunei.

Under Budi Madani, even certain diesel-powered privately owned passenger vehicles are also eligible to receive a monthly cash assistance payout to offset the increase in daily transportation costs following this rationalisation, provided certain criteria are met.

As we have previously covered, this program is split into two catergories: Budi Invididu and Budi Agri-Komoditi, the latter being for farmers, livestock breeders, and smallholders. More information on this can be found at:

The Ministry of Finance has also outlined the criteria for diesel vehicles that explicitly do not qualify for subsidised diesel or a monthly cash rebate. These include:

  • Vehicles privately registered for companies and organisations
  • Luxury vehicles less than 10 years old (think BMWs, Mercedes-Benzes, and Audis)
  • Vehicles registered for e-hailing services
  • Motorcycles, caravans, motorhomes, tourist vans, and tourist buses.

Based on these preclusions, your typical Ranger or HiLux would be eligible to receive a monthly RM200 cash assistance (limited to the first 167-litres of diesel for that month). Successful applicants of the Budi Madani program approved by June 3rd shouldn’t have to wait long to receive their first payout.

Remember, those who are applying for a fuel rebate through Budi Individu or Budi Agri-Komoditi cannot be the recipient of existing fuel subsidies under SKDS 1.0 or SKDS 2.0. Should the vehicle registration number in question is found in the SKDS 1.0 or SKDS 2.0 records, these applications will be denied.

SKDS 2.0

On the other side of the coin, those operating a few or more diesel vehicles in a commercial or logistics capacity can lean on the Sistem Kawalan Diesel Subsidi (SKDS) 2.0 (or Subsidised Diesel Control System 2.0) announced by the Ministry of Finance Malaysia on May 29, 2024.

This was implemented to address issues of leakage and diesel smuggling, and to ensure that only eligible groups can benefit from subsidised diesel.

To minimise the cost increase on the transportation of goods and therefore keep impact to Malaysian consumers low, fleet cards would be issued to appropriate parties that would allow them to continue to enjoy a subsidised diesel price of RM2.15 at the pumps (SKDS 2.0).

There are 23 types of diesel vehicles eligible for subsidies. These are:

  • Rigid Trucks - General Cargo
  • Prime Movers
  • Rigid Trucks - Refrigerated
  • Rigid Trucks - Flour Tankers
  • Rigid Trucks - Luton/Box
  • Window Vans
  • Rigid Trucks - Water Tankers
  • Panel Vans
  • Rigid Trucks - Bottled Beverages
  • Rigid Trucks - Curtainsiders
  • Catering Trucks
  • Rigid Trucks - Agricultural Products
  • Rigid Tanker Trucks - Beverages
  • Rigid Trucks - Animal Pens
  • Semi-Panel Vans
  • Rigid Trucks - Combination
  • Mobile Service Buses
  • Rigid Trucks - Open Platform
  • Mobile Service Vans
  • Catering Buses
  • Catering Vans
  • Rigid Trucks - Mobile Services
  • Rigid Garbage Trucks

SKDS (1.0)

The original SKDS (1.0), which employs a similar mechanic, has 10 vehicle types for land public transport use eligible for targeted subsidy, which remains at RM1.88/litre, and these includes:

  • Express Buses
  • School Buses
  • Stage Buses
  • Rental Cars
  • Mini Buses
  • Feeder Buses
  • Fire Engines (NGOs)
  • Ambulances (NGOs)
  • Hearse Vans/Trucks
  • Taxis

Jim Kem

Jim Kem

Content Producer

There's just something about cars. It's a conveyance, it's a liability, it's a tool; but it can also be a source of joy, pride, inspiration and passion. It's much like clothes versus fashion. And like the latter, the pursuit of perfection never ends.