The ministry of finance (MoF) revealed last Friday (June 26, 2026) that it will allow an individual’s eligibility for Budi Madani Diesel (Budi Diesel) to be transferred to a close family member, which will allow the latter to enjoy subsidised diesel will be priced at RM2.10 per litre nationwide come July 1, 2026 – you can currently enjoy RM2.15 per litre.
We now have a better understanding on how this will work, as the Budi Madani website has been updated with information that those seeking to do so will find very relevant. Here are some questions that they may have:
Where do I apply to transfer my Budi Diesel eligibility?
You’ll need to head on over to the official Budi Madani website to submit an application for the transfer. According to the ministry, the transfer programme will be rolled out in phases, with the first requiring you to submit an application by July 12, 2026. Applicants can find out if the transfer request is approved beginning July 15, 2026.
Subsequent phases will require applications to be submitted by no later than the 27th of the month, with the results provided by the first of the month after. For example, if you apply by August 27, you’ll only know if the transfer request is approved on September 1. Should you submit an application after the 27th of the month, like on August 29, the request will be processed for the month of October instead of September.
What do I need to submit an application?
Firstly, you would need to already be qualified for Budi Diesel, meaning you are a Malaysian with a valid identity card (MyKad) and driving licence (LMM), while also having a privately owned diesel vehicle registered in your name with a valid road tax (LKM).
When submitting an application, you will need to provide the MyKad, tax identification number (TIN), personal phone number and Budi Madani eligibility status of both the eligible Budi Diesel recipient as well as the person it is being transferred to.
Who can I transfer my Budi Diesel eligibility to?
According to the MoF, you can transfer your Budi Diesel status to one close family member that is a Malaysian citizen with a valid MyKad and already qualifies for Budi Madani RON 95 (Budi95). Family member in this case refers to either your spouse, a parent, one of your children or a sibling.
You will not be able to transfer to your cousins, uncles, aunties, mother-in-law, father-in-law, daughter-in-law, son-in-law, grandfather, grandmother or grandchildren. It is strictly close family members only.
How many times can I transfer Budi Diesel eligibility?
You are only allowed to transfer your Budi Diesel eligibility once. When approved, it is a one-way transfer that cannot be revoked and you cannot have it transferred back to you. The person it is transferred to also cannot request for the eligibility to be transferred to another person. As such, it is important to decide properly who to transfer to.
There are certain situations where eligibility can be transferred again but this requires prior notification. These include the death of the person that had the eligibility transferred to or a legal separation, which is an official recognised divorce. Outside of these two scenarios, it is a one-way thing.
How does the quota work when I transfer my Budi Diesel eligibility?
By default, those eligible for Budi Diesel are entitled to 200 litres per month, which can be increased by 100 litres to 300 litres per month upon application. According to the ministry, the transfer of Budi Diesel eligibility only involves the ability to purchase subsidised diesel at the same quota of the original Budi Diesel status holder.
For example, let’s say your dad is eligible for Budi Diesel and 200 litres a month. When he transfers his eligibility to you, you gain access to Budi Diesel and 200 litres a month. Should your dad be approved for the additional 100 litres prior, you get access to 300 litres.
What happens to your dad? Well, he loses his access to Budi Diesel and reverts to Budi95, which by default comes with a 200-litre monthly quota.
It doesn’t matter how many diesel vehicles your family owns because Budi Diesel is tied to the individual, not the vehicle. As such, even if the original Budi Diesel holder buys another diesel vehicle, he or she will not gain a second round of Budi Diesel eligibility once it is transferred.
Additionally, the receiver of the Budi Diesel eligibility also cannot request for an increased quota (assuming the original Budi Diesel stuck to a 200-litre quota), and cannot be transferred eligibility by another family member.
I was transferred Budi Diesel eligibility by a close family member but I have since bought my own diesel vehicle. What happens then?
In this scenario, you would qualify for Budi Diesel yourself and the existing eligibility transfer will be automatically voided. While not explicitly stated by the MoF, this should also mean the original Budi Diesel status holder recovers his or her eligibility since each person meets the criteria.
What happens if the original Budi Diesel holder changes from a diesel to petrol vehicle?
Should the original Budi Diesel holder no longer own any diesel vehicle, he or she would no longer meet the criteria and doesn’t get Budi Diesel. As one is tied to the other, the person that received the eligibility transfer would also no longer have access to Budi Diesel.
Put simply, the original Budi Diesel recipient must fulfill the criteria for subsidised diesel, one of it being having a privately owned diesel vehicle that is registered in their name, and with a valid road tax. Once they no longer qualify, the person the eligibility is transferred also doesn’t enjoy Budi Diesel.
Explain it to me like we’re at a kopitiam
If you qualify for Budi Diesel, you can transfer your eligibility to only one close family member (spouse, a parent, one of your children or a sibling). This transfer can only be done once and the recipient will have access to whatever quota (200 or 300 litres) you qualified for, while the original holder gives up Budi Diesel access and reverts back to Budi95 and 200 litres a month.
The recipient is essentially tied to the original Budi Diesel status holder, meaning if the latter fails to meet the criteria for Budi Diesel – no longer owning a diesel vehicle – the former also doesn’t get Budi Diesel. However, if the recipient purchases a diesel vehicle, he or she gets their own Budi Diesel access.
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This system is stupid and make things complicated. Why make petrol and diesel separate? Make things easy la. Just give everyone one combined fuel quota and let them use it however they want. Not everyone drives a car under their own name. Many people use their parents’ car, spouse’s car, kids’ car or even company car.
Simple only what. Give one combined quota. Today I pump petrol, deduct from the same quota. Tomorrow I drive a diesel car, also deduct from the same quota. No need so many rules and restrictions. Why make a simple thing so complicated?