The Malaysian Automotive Association (MAA) has said it welcomes the government’s revised Budi Madani Diesel (Budi Diesel) that will soon enable eligible Malaysians to purchase subsidised diesel at RM2.10 per litre come July 1, 2026.
The association also commended the decision to allow eligible owners of pick-up trucks and jips (typically referring to SUVs) to apply for a higher monthly quota from 200 litres to 300 litres per month.
It added that the new subsidy mechanism will help restore consumer confidence, particularly among prospective buyers who decided to postpone their vehicle purchases following the diesel subsidy rationalisation that began in June 2024.
The data showed sales of diesel vehicles, particularly within the pick-up truck and SUV segments in Peninsular Malaysia, dropped by almost 25% since then. East Malaysia was less affected because even with the diesel subsidy rationalisation, prices were fixed at RM2.15 per litre there.
“MAA greatly appreciates the government’s commitment to supporting Malaysian motorists through the expanded targeted diesel subsidy scheme. As the programme continues to evolve, we hope consideration can also be given to extend the additional 100 litres of subsidised diesel to include multi-purpose vehicles (MPVs), which are commonly used by larger families for their daily transportation needs,” said MAA president Mohd Shamsor Mohd Zain.
“As diesel-powered MPVs account for only about 1% of the total industry volume (TIV), extending the subsidy to this segment would have only a minimal fiscal impact while providing meaningful assistance to families who depend on these vehicles,” he added. Based on the ministry of finance’s (MoF) media briefing on the new Budi Diesel, cars that are not a pick-up truck or jip, such as sedans and MPVs, are not eligible to request for the increased quota.
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Does it mean that if you own both engine type cars, you can get 200 litres of RON95 + 200 litres of diesel per month ? While Ron95 users only get 200 litres of petrol ron95 only?