BUDI Diesel Now Transferable to Three Individuals

BUDI Diesel Subsidy Transfer: What Malaysian Vehicle Owners Need to Know

BUDI MADANI Diesel (BUDI Diesel) is a Malaysian government subsidy programme administered by the Ministry of Finance that provides monthly fuel subsidies to eligible diesel vehicle owners. Under a policy revision effective 17 September 2026, registered vehicle owners who qualify for BUDI Diesel can now transfer their subsidy eligibility to a maximum of three individuals who genuinely use the registered vehicle — without transferring vehicle ownership. The transfer mechanism is designed to serve Malaysian households and businesses in Sabah and Sarawak where "sambung bayar" (loan take-over) vehicle purchases and multiple diesel vehicles per household are common, according to a report by Berita Harian.

The programme allows approved recipients to obtain their own monthly eligibility quota to purchase either subsidised RON95, subsidised diesel, or a combination of both. Applications are processed through the official BUDI MADANI Portal (budimadani.gov.my) or physically at any Lembaga Hasil Dalam Negeri (LHDN) office nationwide. No vehicle title transfer is required under the new regulation.

Key Facts

As of 3 July 2026, the government reported that nearly 200,000 diesel vehicle owners had received BUDI Diesel benefits within the first three days of the programme's implementation, and by 30 June 2026, the programme had reached approximately 700,000 vehicle owners nationwide.

Who Is Eligible to Receive a BUDI Diesel Subsidy Transfer?

Transfer recipients must be Malaysian citizens holding a valid MyKad, must already qualify for the BUDI MADANI RON95 (BUDI95) subsidy, and must be the actual user of the vehicle for which the transfer is made. The new policy removes the previous restriction that limited transfers to immediate family members only, allowing employers and household heads to channel subsidies to employees or relatives who genuinely operate the diesel vehicle.

According to the source report by Careta citing Berita Harian, the policy revision was announced following feedback received by the Prime Minister — specifically from diesel vehicle users in Sabah and Sarawak, where "sambung bayar" (ongoing loan assumption) purchase arrangements and multiple diesel vehicle ownership within a single household were reported to be more common. Once a transfer application is approved, the recipient uses their own MyKad to purchase subsidised diesel based on the specific vehicle assigned to them.

"Pemindahan kelayakan kini tidak lagi terhad kepada ahli keluarga terdekat. Pemilik berdaftar boleh memindahkan kelayakan kepada warganegara Malaysia yang mempunyai MyKad sah, layak menerima BUDI MADANI RON95 (BUDI95) dan merupakan pengguna sebenar kenderaan berkenaan." — BUDI Diesel transfer policy as reported by Careta (17 September 2026)

Owners who hold more than one private diesel vehicle may transfer their monthly quota for up to three vehicles to different individuals, depending on the total number of vehicles registered under their name. The owner retains the monthly eligibility for any diesel vehicle that is not transferred, for their own use.

As of 17 September 2026, a BUDI Diesel registered owner in Sabah or Sarawak with four private diesel vehicles may transfer quota for three of those vehicles to three separate actual users — such as a spouse, a child, and an employee — while retaining their own personal diesel allocation for the fourth vehicle.

How Does the 100-Litre Additional Quota Work for Jeeps and Pickups in Malaysia?

Registered owners of eligible private diesel jeeps or pickups must first apply for the additional 100-litre monthly quota — subject to stipulated conditions — before they may submit any application to transfer their subsidy eligibility to another individual. This sequential requirement applies only to the "jip" (jeep) and "pikap" (pickup) vehicle categories defined under the BUDI Diesel programme.

The additional quota is an optional top-up beyond the standard monthly diesel allocation, intended to cover the higher fuel consumption patterns of utility-oriented vehicles commonly used in Malaysian rural and semi-urban areas, particularly in East Malaysia. If a registered owner transfers eligibility for all three of their diesel vehicles, that owner no longer retains any diesel subsidy benefit and will only enjoy the BUDI95 (subsidised RON95) allocation.

Each vehicle may only undergo one transfer for the entire duration of the programme; after approval, the transferred eligibility cannot be returned to the registered owner or re-assigned to another person, except in exceptional circumstances explicitly defined by the government.

What Are the Application Deadlines for BUDI Diesel Transfers in Malaysia?

Applications must be submitted no later than the 27th day of the current month for the transferred subsidy eligibility to be usable starting on the 1st day of the following month. For example, an application submitted on or before 27 September 2026 will be processed so that the recipient's eligibility becomes active on 1 October 2026, subject to data verification and approval by the authorities.

Applications can be submitted through two official channels: the BUDI MADANI Portal online system, or physically at any LHDN (Inland Revenue Board of Malaysia) office nationwide. The government also states that further information and application assistance are available at participating petrol stations, particularly in areas with high diesel vehicle density such as Sabah and Sarawak, where the policy feedback originated.

For the September 2026 application cycle, the cut-off date is 27 September 2026; submissions after that date will be processed for eligibility beginning 1 November 2026, not 1 October 2026.

Who Is This For in Malaysia?

This transfer policy is designed for Malaysian registered diesel vehicle owners who do not personally drive their vehicles — including business owners with company-assigned drivers, household heads whose vehicles are used by family members in Sabah and Sarawak, and employers who provide diesel vehicles to employees under "sambung bayar" financing arrangements.

The policy directly addresses a structural gap in the original BUDI Diesel framework: registered owners who were not the actual users of the vehicle could not transfer their subsidy to the person who was, resulting in an inequitable distribution of fuel subsidies. This is especially pertinent in East Malaysia, where multi-vehicle households and informal vehicle financing arrangements are more prevalent.

For context, the government reported on 26 June 2026 that BUDI Diesel had been extended to private vehicles owned by companies, with subsidy eligibility transferable to actual users — a precursor to the expanded individual transfer rules now in force.

Common Questions

Can I transfer my BUDI Diesel subsidy to my employee who drives my company van?

Yes. Transfer is no longer restricted to immediate family members. Your employee must be a Malaysian citizen with a valid MyKad, must already qualify for BUDI95, and must be the actual driver of the registered diesel vehicle. Submit the application via the BUDI MADANI Portal or at any LHDN office.

Can a recipient receive BUDI Diesel transfers from more than one vehicle owner?

No. Each recipient is only allowed to receive a transfer from one registered owner. If an individual drives vehicles belonging to multiple owners, they must choose a single owner's transfer, and the other owner must apply for their own subsidy or select a different recipient.

I applied on 28 September 2026 — when will my transferred eligibility start?

Your application will be processed for eligibility starting 1 November 2026, not 1 October 2026. The 27th-of-the-month cut-off applies strictly: applications submitted on or before the 27th activate on the 1st of the following month, subject to data verification and approval.

Sources and Methodology

This article is based entirely on the primary source material: Qalif Latif, "BUDI Diesel Kini Boleh Dipindahkan Kepada Tiga Individu," Careta.my, 17 September 2026, which cites Berita Harian as the originating news report. The source also references earlier Careta coverage from 26 June 2026 (company-owned vehicle expansion), 30 June 2026 (700,000 beneficiary figure), and 3 July 2026 (200,000 beneficiary figure within three days).

All RM (Ringgit Malaysia) references are preserved as stated in the source. No USD conversions were required. The original article was published in Bahasa Malaysia; quotes were translated for this English version while preserving policy terminology (e.g., "sambung bayar," BUDI MADANI, BUDI95, MyKad) in their original form. Dates follow the day-month-year format used in the source.

This article was last updated on 19 September 2026. Information specific to Malaysia was verified against the Careta.my source article (URL: https://careta.my/article/budi-diesel-kini-boleh-dipindahkan-kepada-tiga-individu). No official government circular confirming the 17 September 2026 policy change was independently verified.