How to claim the diesel subsidy in Malaysia

Lifestyle
April 8, 2025
  •  
By 
Ashwinee Rvan

Malaysia provides diesel fuel subsidies through several programmes aimed at easing the financial burden on eligible individuals and businesses. One prominent initiative is the Program Bantuan Subsidi MADANI (BUDI MADANI). This detailed guide will explain the eligibility requirements, necessary documentation, and the step-by-step procedure to claim your diesel fuel subsidy in Malaysia.

Who qualifies for the diesel subsidy in Malaysia?

To be eligible, individuals must meet the following criteria:

BUDI Individu — For individual diesel vehicle owners

  1. Must be a Malaysian citizen, and
  2. Annual individual or joint income of RM100,000 and below.
  3. Owns a diesel-based personal vehicle (not a luxury vehicle) under 10 years of age, registered with the JPJ.
  4. The vehicle must have an active road tax.
  5. The vehicle must be declared in Peninsular Malaysia and registered with JPJ using a MyKad number.

BUDI Agri-Komoditi — For agriculture and commodity smallholders

  1. Must be a Malaysian citizen, and
  2. Must be registered as a farmer or smallholder with the Ministry of Agriculture & Food Security (KPKM) or the Ministry of Plantation & Commodities (KPK).
  3. 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.

What are the 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.

What is the application process?

To claim your diesel fuel subsidy, follow these steps:

  1. Check your eligibility: Ensure you meet the criteria for the relevant     subsidy programme.
  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.
  4. 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.

Start claiming your subsidy now

By taking advantage of the BUDI MADANI subsidy programme, eligible Malaysians can significantly reduce their diesel-related expenses. Whether you are an individual vehicle owner, a smallholder, or part of a larger commercial sector, understanding the process and preparing the correct documents ensures a smooth and successful application.

For more detailed information, visit the official BUDI MADANI website or contact their helpline.

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