ExFunCity News | BUDI Diesel Subsidy Transfer Expanded to More Malaysians

BUDI Diesel transfer mechanism has been expanded in Malaysia, allowing registered owners of eligible private diesel vehicles to transfer their subsidy eligibility to qualified people who actually use the vehicle. Previously, this transfer facility was limited mainly to immediate family members. The latest improvement took effect on September 16, 2026.

Latest Update

Under the updated BUDI Diesel transfer rules, a registered vehicle owner may transfer the monthly subsidy eligibility to an actual vehicle user who meets the required conditions.

The recipient must:

• Be a Malaysian citizen with a valid MyKad
• Be eligible for BUDI MADANI RON95, also known as BUDI95
• Be the actual user of the specified diesel vehicle

Once approved, the recipient can use their own MyKad to purchase subsidised fuel based on the eligibility assigned to the vehicle. The transfer does not change the registered ownership of the vehicle.

Owners With Multiple Diesel Vehicles Get More Flexibility

Another major change affects Malaysians who own several eligible private diesel vehicles.

A registered owner with more than one diesel vehicle may now transfer the monthly BUDI Diesel transfer eligibility to a maximum of three other individuals, depending on the number of qualifying vehicles owned.

For example, an owner with four eligible diesel vehicles may transfer the subsidy eligibility of three vehicles to three actual users while keeping the remaining vehicle’s eligibility for personal use.

However, each eligible vehicle can only have its subsidy eligibility transferred once. An approved transfer generally cannot be transferred again to another person except under specific circumstances allowed by the authorities.

Current Application Status

Applications under the expanded mechanism opened on September 16, 2026.

Malaysians who want their approved eligibility to take effect from October 1, 2026 must submit their application no later than September 27, 2026, subject to data verification and approval.

Applications can be submitted through the official BUDI MADANI portal.

Applicants may also visit Lembaga Hasil Dalam Negeri Malaysia offices for assistance, while information and support are also available at participating or nearby petrol stations.

What Malaysians Are Asking

One common question is whether the recipient must be related to the registered owner.

Under the latest rules, the answer is no. The recipient no longer needs to be an immediate family member, as long as the person meets the eligibility requirements and is genuinely using the vehicle.

Another important point is that one recipient can only receive transferred eligibility from one registered vehicle owner.

What Comes Next

The government says the expanded BUDI Diesel transfer mechanism is intended to better reflect how private diesel vehicles are actually used, particularly in situations where the registered owner and daily vehicle user are different.

Applicants planning to receive the subsidy from October should complete their applications by September 27 to avoid missing the processing window.

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