Automotive

How to claim diesel fuel subsidy in Malaysia: A comprehensive guide

July 25, 2024
  •  
By 
Izza Atirah

Malaysia offers diesel fuel subsidies through various programs to support eligible individuals and businesses, reducing their financial burden. One of the key initiatives is the Program Bantuan Subsidi MADANI (BUDI MADANI). This comprehensive guide will walk you through the eligibility criteria, required documents, and the step-by-step process to claim your diesel fuel subsidy in Malaysia.

Eligibility criteria

Before applying, ensure you meet the specific eligibility criteria for the relevant subsidy program:

For individual diesel vehicle owners

(BUDI individu):

1. Must be a Malaysian citizen.

2. Owns a diesel-based personal vehicle (not a luxury vehicle) under 10 years of age, registered with the JPJ.

3. The vehicle must have an active road tax.

4. Annual individual or joint income of RM100,000 and below.

For agriculture and commodity smallholders (BUDI agri-komoditi):

1. Must be registered as a farmer or smallholder with the Ministry of Agriculture & Food Security (KPKM) or the Ministry of Plantation & Commodities (KPK).

2. Must be an active smallholder, generating an annual turnover of RM50,000 to RM300,000.

For other sectors (commercial vehicles, fishing, public transport):

1. Commercial vehicles: Owners of commercial vehicles registered with the Road Transport Department (JPJ).

2. Fishing industry: Licensed fishermen registered with the Fisheries Development Authority of Malaysia (LKIM).

3. Public transport operators: Operators of public transport services including buses, taxis, and e-hailing vehicles.

Required documents

To claim the diesel fuel subsidy, prepare the following documents:

1. Vehicle registration card: For commercial and individual vehicles, ensure your vehicle is registered with JPJ.

2. License or permit: Applicable licenses or permits from relevant authorities (e.g., fishing license, agricultural permit).

3. Business registration: A copy of your business registration with the Companies Commission of Malaysia (SSM) if applicable.

4. Identification documents: NRIC or passport of the applicant.

5. Income statements: Proof of income for individual applicants under BUDI Individu.

6. Fuel purchase receipts: Keep detailed records and receipts of diesel purchases.

Application process

Follow these steps to claim your diesel fuel subsidy:

1. Check your eligibility: Ensure you meet the criteria mentioned above for the relevant subsidy program.   

2. Gather necessary documents: Prepare all required documents, such as proof of vehicle registration, income statements, and any other relevant certifications.

3. Apply online:

Submit your application through the official BUDI MADANI website. The portal is open for applications throughout the year. For other sectors, visit the nearest branch of the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) or apply online through the official portal.   

4. Early application benefits: Applicants who apply by 3 June 2024 and are approved will receive their first cash assistance by mid-June 2024. Applications after this date will receive their first cash assistance within two weeks of approval.

5. Receive your subsidy:

Approved subsidies will be credited monthly into the individual’s bank account. Those without bank accounts can collect their cash assistance at any Bank Simpanan Nasional (BSN) branch in Peninsular Malaysia.

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Claiming the diesel fuel subsidy in Malaysia involves ensuring you meet the eligibility criteria, preparing the necessary documents, and following the application process.

By adhering to the guidelines and keeping thorough records, eligible individuals and businesses can benefit from the government’s initiative to ease the financial burden of fuel costs.

For more detailed information and updates, visit the official BUDI MADANI website  or contact their helpline at 1-800-88-2747 / 03-8882 4565 / 03-8882 4566 or email budimadani@treasury.gov.my.

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