Gov’t expands Budi Diesel eligibility transfer, now for all individuals using the vehicles, not just family members

The government has announced that the scope of eligibility transfer for the Budi Madani Diesel (Budi Diesel) has been expanded. As of yesterday, September 16, registered owners of private diesel vehicles who are eligible under Budi Diesel can now transfer their eligibility to any individuals who use the vehicles. Previously, the transfer of eligibility was permitted only to immediate family members.

In a statement, the ministry of finance said that registered owners may transfer eligibility to any Malaysian citizens who hold a valid MyKad and are eligible for Budi Madani RON 95 (Budi95), provided they are the actual users of the designated vehicle.

Approved recipients will receive their own monthly quota, and can use their own MyKad to purchase subsidised diesel based on the diesel vehicle designated to them. The ministry added that this transfer of eligibility does not involve or require a change in vehicle ownership.

Gov’t expands Budi Diesel eligibility transfer, now for all individuals using the vehicles, not just family members

For each eligible vehicle, the entitlement may be transferred only once, as it was previously. Once approved, the entitlement cannot be transferred back to the registered owner or to another individual, except under specific prescribed circumstances. A recipient may only receive a transfer of entitlement from a single registered owner.

This enhancement follows feedback gained from users, particularly from diesel vehicle users in Sabah and Sarawak, where sambung bayar (continuing loan repayments for a vehicle without formal ownership transfer) arrangements and the ownership of multiple diesel vehicles within a single household are common.

Applications under the new ruling can be submitted via the Budi Madani portal, in person at any Inland Revenue Board of Malaysia (LHDNM) office, or by seeking further information and assistance at nearby petrol stations.

Gov’t expands Budi Diesel eligibility transfer, now for all individuals using the vehicles, not just family members

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To enable the entitlement to be utilised starting from the first day of the following month, applications must be submitted no later than the 27th of the current month. For instance, an application submitted by September 27, 2026 will be processed to allow the entitlement to be used starting October 1, 2026, subject to data verification and validation.

Submitted details—such as information regarding the owner, recipient, and vehicle—will be cross-checked with the records of relevant agencies before approval is granted.

The ministry added that eligibility transfers approved prior to September 16 remain final. Registered owners who possess more than one vehicle may submit a new application, subject to a maximum limit of three transfer recipients and the number of registered diesel vehicles. All transfer applications that remain unprocessed as of September 15, 2026, will be returned to the applicants, who will need to submit a new application in accordance with the newly announced policy guidelines.