As highlighted previously, the government has announced that the price of subsidised diesel for Malaysians will be lowered to RM2.10 per litre nationwide from July 1, 2026.
Under the Budi Madani Diesel (Budi Diesel) scheme, Malaysian citizens with a valid identity card (MyKad) and driving licence (LMM) owning a privately-owned diesel vehicle with a valid road tax (LKM) registered in their name will be able to access subsidised diesel at that price, at a monthly quota of 200 litres, which is shared with Budi95 (for a full explanation of this, read our Budi Diesel FAQ story).
As is already known, there are two grades of Euro 5 diesel available in the country, and this is biodiesel B10 (which is transitioning to B15) and biodiesel B7, with different prices for both. Since 2022, the price of the B7 blend has always cost 20 sen more per litre, and that price difference is set to widen significantly with the introduction of the new subsidy scheme.
This is because the RM2.10 per litre price for subsidised diesel will only apply to B10 or higher diesel blends, while B7 diesel will remain unsubsidised. As such, B7 will continue following the prevailing market rate for the fuel when the time comes, the approach similar to that for petrol, where RON 95 is subsidised for Malaysians under Budi95, while RON 97 is unsubsidised (it was floated according to market pricing in 2018) and priced at the market rate.
Presently, B7 diesel is priced at RM4.57 per litre, which is 20 sen more than the RM4.37 for B10/B15. From July 1, that price gap between both blends will widen dramatically. Wondering whether you can use B15 over the now much more expensive B7? Read what the car brands say here.
Looking to sell your car? Sell it with Carro.
Sigh! Fishermen cum pirates can’t contraband their unused diesel quota anymore!