Budi Diesel cash assistance increased to RM400 for April, now adds 87.5L of ‘subsidised’ fuel for recipients

In a move to improve assistance to diesel users, the government has increased the monthly cash assistance for both eligible Budi Agri-Community and Budi Diesel Individu recipients. Earlier this evening, the ministry of finance announced that the monthly cash assistance for both programmes had been increased from RM300 to RM400 for April 2026, with the additional RM100 set to be be disbursed on April 21.

This is the second time that the cash assistance has been increased since the Middle East conflict began – it was increased from RM200 to RM300 last month.

Compared to the 200 litres of RM1.99 per litre RON 95 users currently get, the cash assistance effectively helps ‘subsidise’ the first 87.5 litres of diesel for Peninsular users (at the current RM6.72 per litre this week) in relation to the subsidised RM2.15 per litre rate that remains in effect in Sabah and Sarawak. Up to the first 87.5 litres of fill, Peninsular users would pay RM588, while the equivalent amount for East Malaysia is RM188.10, a difference of RM400, which the cash assistance covers.

Or, in other words, without taking the subsidised price into the equation, you get the first 59.5 litres “free,” and then pay full market price beyond that. As it was when introduced, the diesel cash assistance is only for diesel vehicle owners with an annual income of below RM100k, whereas for petrol it is blanket under Budi Madani RON 95 (Budi95) to all eligible Malaysians.

Budi Diesel cash assistance increased to RM400 for April, now adds 87.5L of ‘subsidised’ fuel for recipients

The ministry said that the cash assistance is expected to benefit a sizable number of diesel users, in this case more than 200,000 farmers and smallholders under Budi Agri-Commodity, with additional funds of around RM20 million per month for them.

Meanwhile, the Budi Diesel Individu cash assistance is expected to benefit around 150,000 individual diesel vehicle owners in Peninsular Malaysia, with additional funds of around RM15 million per month being allocated for this.

The ministry said these improvements have been made in light of the ongoing pressures on the global energy market, particularly international petroleum supply disruptions, which have caused the price of refined diesel to increase significantly to US$250 per barrel, which is almost three times what it was before the Middle East conflict.

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