00:03For years, Malaysia kept diesel prices fixed at the pump.
00:08No restrictions available to anyone who filled up.
00:12But as time went on, the cost of sustaining that system ballooned.
00:16As did the leakages.
00:18On June 21, Prime Minister Anwar Ibrahim announced a new approach.
00:23From July 1, subsidised diesel moved to a MyCard-based system.
00:27Targeted, nationwide, and for the first time, uniformed across all states.
00:37In 2026, Malaysia's monthly fuel subsidy peaked at an astounding RM7.5 billion.
00:44Part of the problem was structural.
00:47The subsidised price attracted smuggling with cheap fuel bought locally and sold across the border at a profit.
00:54Volume limits did not exist.
00:56For diesel drivers in Peninsula Malaysia who received cash aid from the government, the situation was different, but hardly any
01:05better.
01:05At RM400 a month and with global oil prices surging due to the West Asia conflict, the monthly payout translated
01:13to around 98 litres at market rates.
01:16In response, the government has opted to shift to the same model already in use for Ron95 petrol, a fixed
01:23subsidised price, verified through MyCard and capped with a monthly quota.
01:28Under the new Budi Diesel scheme, the subsidised price is now set at RM2.10 per litre and is available
01:36to every eligible Malaysian citizen.
01:38The monthly quota is 200 litres, shared between Ron95 petrol and diesel.
01:45While the previous cash assistance covered around 91 litres at market rates, the new quota provides 200 litres of subsidised
01:53fuel at a fixed price.
01:55The government expects some 700,000 Malaysians to be covered under the new scheme.
02:01In contrast, the previous cash rebate system covered 180,000 persons.
02:079 out of 10 privately registered diesel vehicles in Malaysia fall into this category, including the Toyota Hilux and Fortuner,
02:15the Mitsubishi Triton and Pajero and the Isuzu D-Max.
02:19However, luxury diesel vehicles will not be entitled to the top-up.
02:24Those under the existing RM400 Budi Individu Cash Assistance Program are automatically transferred to the new system.
02:31No reapplication is required.
02:35In Sabah and Sarawak, the subsidised price falls 5 cents from RM2.15 to RM2.10 per litre.
02:42While there was no volume cap on how much subsidised diesel a driver could purchase previously,
02:49the new system will see East Malaysians subject to the same monthly quota as their counterparts in the peninsula.
02:56For commercial and fleet vehicles under the Subsidised Diesel Control Scheme or SKDS 2.0,
03:03fleet cut holders will be entitled to diesel at RM2.15 per litre.
03:08The scheme has also been extended and will, for the very first time, cover Sabah, Sarawak and Labuan.
03:14The government has said it will monitor usage patterns.
03:20The verification process is the same as Budi 95 for Ron 95 Petrol.
03:25At the pump, a simple MyCard tab confirms eligibility, payment follows and then the fill-up.
03:32Settle and Touch and Go will support Budi Diesel through EKYC verification.
03:37No new card is required.
03:39For Peninsula Malaysia, early access starts June 27 at RM2.15 per litre,
03:45ahead of the four-nation-wide launch at RM2.10 on July 1st.
03:50Applications for the additional 100-litre quota are open from June 22 at budimadani.gov.my.
03:58That means that, for the very first time, all drivers of Malaysian diesel vehicles will be entitled to the same
04:05price at the pump,
04:06whether they are in Kedah or in Sarawak's interior.
04:10One price, one MyCard, nationwide.
04:13Anun Jaya, FMT.
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