Prime Minister Anwar Ibrahim announced the change in Kuching on Malaysia Day, 16 September 2026, and made it effective the same day. It fixes a problem that had been obvious since BUDI Diesel began: the person whose name is on the grant is often not the person who drives the pickup. A company owner's Hilux driven by a supervisor, a father's 4x4 used by a son-in-law, a Navara shared by business partners. Under the old rule, only immediate family could receive the subsidy. Now almost anyone can, with conditions.
This explainer is built on the Ministry of Finance's 30-question FAQ on BUDI Diesel transfers dated 16 September 2026, published on budirakyat.gov.my, the main BUDI MADANI FAQ (updated 30 June 2026), the Ministry's weekly fuel price series on data.gov.my, and Free Malaysia Today's report of the announcement.
*Cover image: a Sabah-registered Ford Ranger 4x4 pickup, the kind of private diesel vehicle the scheme covers. Photo: CEphoto, Uwe Aranas, CC BY-SA 3.0, via Wikimedia Commons.*
Who can transfer, and to whom
The owner must be the original BUDI Diesel recipient. That means an active driving licence, a valid MyKad, a private diesel vehicle registered in their own name and current road tax on it. Company-registered vehicles are outside the scheme.
The recipient must be a Malaysian citizen with a valid MyKad who is eligible for BUDI95, which in practice means holding an active driving licence. The owner has to confirm the recipient is the real user of that vehicle. There is no family test any more and no supporting documents to upload.
Limits worth knowing before you file:
- One vehicle, one recipient. Each transfer names a specific registration number.
- Three recipients per owner, not counting the owner. An owner with four diesel vehicles can keep one and give away three.
- One owner per recipient. You cannot collect transfers from two different owners.
- No onward transfer. A recipient cannot pass it on.
What the recipient actually gets
This is the part people get wrong. A transfer does not hand over litres. Every eligible Malaysian already has a monthly BUDI MADANI quota, 300 litres since 1 September 2026. A non-owner can only spend it on RON95. Once a transfer is approved, the recipient can spend that same quota on diesel at RM2.10 using their own MyKad.
The one addition is the 100-litre top-up for eligible private pickups and jeeps. It is not automatic. The owner applies for it at budimadani.gov.my, and if approved, it follows the recipient assigned to that vehicle. A recipient cannot apply for it themselves.
Each purchase is still capped at RM250 a transaction, which is about 119 litres at RM2.10. The subsidised product is B10 diesel, or another grade the government has approved at the same price, so check the pump label before you fill.
What it is worth
For the week of 1 to 7 October 2026, the Ministry's series puts unsubsidised diesel in Peninsular Malaysia at RM5.27 a litre against the BUDI price of RM2.10, a gap of RM3.17. A driver who puts 150 litres a month into someone else's pickup pays RM790.50 at the pump price and RM315.00 after a transfer, a saving of RM475.50 a month. The 100-litre top-up alone is worth RM317 at this week's gap. Prices move every Wednesday, so treat these as a snapshot.
In Sabah, Sarawak and Labuan the same series lists retail diesel at RM2.15 for everyone this week, so the cash value of a transfer there is a few sen a litre.
Timing: the 27th rule
Applications are processed monthly. Submit by the 27th and the transfer shows from the 1st of the next month. The Ministry's own example: file by 27 September to use it from 1 October. The next cut-off is 27 October 2026 for November. The FAQ adds that processing can run as often as every two days, so earlier filers may see it sooner. You can amend the recipient or plate number only until the application is approved.
Apply at budimadani.gov.my or in person at any LHDN office. You need, for both owner and recipient: name, MyKad number, tax identification number (TIN), phone and email, plus the vehicle's registration number. Recipients check their status on the same portal with their own MyKad.
When a transfer ends
Once approved, the transfer is final and one-way. It ends, or is clawed back, only in these cases:
- The recipient later owns a diesel vehicle in their own name, or becomes eligible in their own right. The entitlement returns to the owner the following month.
- The owner sells or disposes of the vehicle, switches to a petrol car, or no longer qualifies. The recipient loses it too.
- The vehicle's road tax expires. The recipient loses access until it is renewed.
- The recipient dies, or the two are legally divorced. Notify tanya@budimadani.gov.my.
If an owner with three or fewer vehicles transfers all of them, the owner loses BUDI Diesel access completely.
Two transition rules matter. Transfers approved before 16 September stand and count toward the three. Any application still pending on 15 September, including family-relationship checks, was returned, so it has to be filed again under the new rules.
Before you hand it over
Pick the recipient carefully. You cannot undo it if they change jobs, move away or stop driving the vehicle, and the person keeps it as long as your vehicle qualifies. For questions, the BUDI MADANI centre is on 1300-88-9595, WhatsApp +603-2631 4595, or tanya@budimadani.gov.my.
*Sources: Ministry of Finance, Soalan Lazim: Pemindahan Kelayakan BUDI Diesel (16 September 2026) and BUDI MADANI Soalan Lazim (30 June 2026), both on budirakyat.gov.my; Ministry of Finance weekly fuel prices via data.gov.my (series dated 1 October 2026); Free Malaysia Today, 16 September 2026.*
