In addition to exempting diesel vehicle ownership transfer fees for three months beginning July 1, 2026, the ministry of finance (MoF) also announced today that it will allow an individual’s eligibility for Budi Madani Diesel (Budi Diesel) to be transferred to a close family member.
This is the “approved person” system that the MoF mooted earlier this week, which is good news for those hoping for some flexibility with access to subsidised diesel. To set some context, eligibility for Budi Diesel requires one to be a Malaysian citizen with a valid identity card (MyKad) and driving licence (LMM), while also having a diesel vehicle registered in their name (privately owned).
This can be a nuisance for some families. For example, let’s say the head of a household owns a Toyota Hilux but only one of his or her children uses the vehicle often. It wouldn’t always be convenient for the child to bring the true owner of the diesel vehicle that is eligible for Budi Diesel along to the pumps to purchase subsidised diesel at RM2.10 per litre from July 1, 2026 – more on Budi Diesel here.
As such, this “approved person” system serves as a remedy but there are terms and a form of verification before any sharing can happen. This likely means submitting an application but the MoF says it is still finalising technical details and will post up the subsidy eligibly transfer mechanism on the official Budi Madani portal when ready. This approach also means there’s no need to transfer vehicle ownership among family members, which may entail additional costs despite the transfer fee exemption.
Naturally, some will question if the subsidy eligibly can be transferred to more than one family member, which is a fair thing to ask for if many family members share the same vehicle. There’s also the matter of how the 200-litre quota (includes both subsidised diesel and RON 95 petrol) will be handled with the sharing active. We’ll have wait for the MoF to provide more details.
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