BUDI Diesel Malaysia: Eligibility, monthly entitlement and how to use it with TNG eWallet

If you drive a diesel vehicle in Malaysia, the way you receive your diesel subsidy has changed.

From 27 until 30 June 2026, the Government replaced cash assistance with a new subsidy mechanism that allows eligible drivers buy diesel at the subsidised price RM2.15 per litre directly at the pump using MyKad.

Instead of waiting for monthly payments, your subsidy is now applied instantly when you refuel.

Here’s everything you need to know, including eligibility, monthly entitlement, and the easiest way to use BUDI Diesel with TNG eWallet.

 

What is BUDI MADANI Diesel?

 

BUDI Diesel is Malaysia’s new fuel subsidy programme under the BUDI MADANI initiative. It allows eligible Malaysians to buy diesel at a subsidised price directly at the pump.

It replaces the previous cash assistance mechanism in Peninsular Malaysia, and blanket subsidised pump price in Sabah and Sarawak with a single nationwide system that allows eligible Malaysians to purchase diesel at a subsidised price of RM2.10 per litre starting 1 July 2026.

The programme now applies across Peninsular Malaysia, Sabah, Sarawak, and the Federal Territory of Labuan.

Under BUDI Diesel:

• Eligible Malaysians can purchase diesel at a subsidised price of RM2.10 per litre.
• Your subsidy is applied instantly at the pump instead of through monthly cash assistance.
• Your eligibility is verified using your MyKad or participating apps like TNG eWallet
• Your BUDI Diesel and BUDI95 allocations are combined into one shared 200 litre monthly entitlement.
• Available at participating petrol stations nationwide.

 

Why use TNG eWallet for BUDI Diesel?

 

While you can verify your eligibility using your MyKad, TNG eWallet offers a faster and more convenient way to access your BUDI Diesel subsidy.

With TNG eWallet, you can:

• Use both BUDI Diesel and BUDI95 at all petrol stations nationwide.
• No need to use your physical MyKad.
• Check your remaining subsidy monthly entitlement anytime in the app.
• Enjoy instant refunds if you pump less than your prepaid amount.
• Cashless payment in one seamless transaction.

You can use the same app for both BUDI95 and BUDI diesel subsidies without downloading multiple apps.

 

How is the new BUDI Diesel programme different from BUDI Diesel Individu?

 

Before 27 June 2026, diesel subsidies worked differently depending on where you lived.

Eligible diesel vehicle owners in Peninsular Malaysia received monthly cash assistance through BUDI Diesel Individu, while motorists in Sabah, Sarawak, and Labuan enjoyed subsidised diesel prices at the pump.

BUDI Diesel replaces these different systems with one nationwide subsidy mechanism.

If you previously received BUDI Diesel Individu and received your final payment on 8 June 2026, you have already been automatically migrated to BUDI Diesel. No new application is needed.

 

Who is eligible for BUDI Diesel?

 

To qualify for BUDI Diesel, you must meet all of the following:

• Malaysian citizen
• Hold a valid driving licence (CDL, PDL, or LDL for permitted vehicle classes)
• Own a private diesel vehicle registered in your name
• Have a valid road tax for that vehicle

Eligible vehicle types include:

• Individual private motor vehicles (Class AB)
• Private cars other than individual motor vehicles (Class AD)
• OKU private vehicles (Class IA)
• Individual e-hailing vehicles (Class AH)

You do not need to submit a new application. Your eligibility is automatically verified against JPJ records.

You can check your eligibility via the:

• BUDI MADANI portal; or
• BUDI MADANI icon in TNG eWallet (available to all verified users)

 

Can I get additional BUDI Diesel monthly entitlement?

 

Yes. Owners of eligible private pickup trucks or jeeps can apply for an additional 100 litres per month, increasing the total monthly entitlement from 200 litres to 300 litres.

This additional monthly entitlement is intended for Malaysians who use their vehicles for:

• Small business
• Agricultural activities
• Rural commuting

Applications can be submitted through the BUDI MADANI portal using your MyDigital ID.

 

How does the BUDI Diesel monthly entitlement work?

 

BUDI Diesel and BUDI95 now share the same monthly fuel allocation.

This means your 200-litre monthly monthly entitlement is flexible.

You can choose to:

• Use all 200 litres for diesel
• Use all 200 litres for RON95
• Split the monthly entitlement between diesel and petrol based on your needs

 

How to use BUDI Diesel with TNG eWallet

 

Using TNG eWallet makes accessing your BUDI Diesel subsidy quick and convenient.

 

Before your first diesel transaction

 

Complete a one-time eKYC verification in TNG eWallet to link your identity with your account and enable the BUDI MADANI feature.

At the petrol station

 

 

1. Tap BUDI MADANI on your home screen, or search BUDI on the search bar
2. Tap “Buy Fuel” and select diesel
3. Select your petrol station and key in your pump number
4. Enter the amount you want to purchase
5. Tap “Pay Now” and approve the payment
6. Show the QR code to the cashier to activate the pump
7. Pump your diesel

If you pump less than the prepaid amount, the unused balance is refunded instantly to your TNG eWallet. Any unused subsidy monthly entitlement is automatically returned as well.

 

Other ways to use BUDI Diesel

 

If you prefer not to use an app, you can still access your subsidy using your physical MyKad:

1. At the cashier

• Present your MyKad for verification
• Pay for the amount you want to pump using cash, card or TNG eWallet
• Proceed to pump to refuel

2. Outdoor Payment Terminal (OPT)

• At selected petrol stations, insert your MyKad into the outdoor payment terminal at the pump.
• Follow the on-screen steps to verify eligibility
• Enter your purchase amount
• Pay using your credit or debit card

The pump will activate automatically.

 

What diesel products are covered?

 

The BUDI Diesel subsidy applies to:

• B10 diesel
• Other Government-approved diesel products sold at the same subsidised price

Availability depends on the petrol station.

 

What about fishermen, farmers, and commercial vehicles?

 

The Government continues to provide separate diesel assistance programmes for other eligible groups.

These include:

• Fishermen, who continue to enjoy subsidised diesel at RM1.65/litre
• Smallholder farmers and commodity landowners through BUDI Agri-Komoditi cash assistance
• Public land transport (buses, school buses, express buses) operators under SKDS 1.0 at RM1.88/litre
• Eligible commercial vehicles in Malaysia through SKDS fleet cards
• River boat operators and rural generator owners who meet the relevant eligibility requirements
• Sistem Kawalan Diesel Bersubsidi (SKDS)

For more information on BUDI MADANI Diesel, browse the full list of FAQs here.