BUDI Diesel: Now you can share it with anyone
BUDI Diesel can now be transferred to other eligible users
From 16 September 2026, registered owners of eligible private diesel vehicles can transfer their BUDI Diesel entitlement to another eligible individual who actually uses the vehicle. Previously, transfers were limited to immediate family members.
This change means the registered owner does not necessarily have to be the person driving the diesel vehicle. Once approved, the recipient can use their own MyKad to purchase subsidised diesel under the transferred entitlement.
What has changed for BUDI Diesel?
Effective date: 16 September 2026
Previous transfer rule: Limited to immediate family members
New transfer rule: Can be transferred to an eligible actual vehicle user
Vehicle ownership: Remains unchanged
Subsidised diesel price: RM2.10 per litre
The Ministry of Finance introduced the change after taking into account feedback from vehicle owners, including situations where a vehicle is registered under one person's name but regularly used by another individual.
Who can receive a BUDI Diesel transfer?
The actual user of the vehicle can now receive the transferred entitlement, provided they meet the applicable eligibility requirements.
Previously, transfers were limited to close family members such as a spouse, parent, child or sibling.
Does transferring BUDI Diesel change the vehicle's ownership?
No. Transferring the BUDI Diesel entitlement does not transfer ownership of the vehicle.
The registered owner remains the registered owner. Only the eligibility to purchase subsidised diesel is transferred to the approved recipient.
How much is subsidised diesel?
From 1 July 2026, eligible private diesel vehicle owners can purchase subsidised diesel under BUDI Diesel at RM2.10 per litre.
The subsidised price is significantly lower than the unsubsidised diesel price, making the BUDI Diesel entitlement relevant for eligible diesel vehicle owners and users who regularly refuel.
| Item | Before 16 September 2026 | From 16 September 2026 |
|---|---|---|
| Who can receive a transfer? | Immediate family members | Eligible actual vehicle users |
| Subsidised diesel price | RM2.10/litre | RM2.10/litre |
| Does vehicle ownership change? | No | No |
| Can recipient use their own MyKad? | Yes, if approved | Yes, if approved |
| Effective date | Before 16 Sept 2026 | 16 Sept 2026 |
Why does the new BUDI Diesel rule matter to vehicle owners?
The registered owner and actual driver may be different people. For example, a pickup truck may be registered under one person's name but used every day by another member of the household, employee or authorised driver.
Under the expanded transfer rules, the registered owner can transfer the BUDI Diesel entitlement to the eligible person who actually uses the vehicle.
However, the transfer is not automatic. The recipient must still meet the relevant requirements and go through the verification process.
What should diesel vehicle owners do?
Check your eligibility first. Vehicle owners and potential recipients should use the official BUDI MADANI system to check their eligibility and manage matters relating to the diesel subsidy.
The government has also moved the individual diesel subsidy mechanism towards MyKad-based implementation under BUDI MADANI.
Keep track of your other vehicle obligations
BUDI Diesel is only one part of vehicle ownership. Owners still need to ensure that their road tax and insurance remain valid.
The Motorist App can help vehicle owners keep track of road tax renewal dates, while Motorist's AutoConcierge provides assistance with vehicle-related questions and ownership matters.
Expert tip:
If your diesel vehicle is registered under your name but regularly driven by someone else, check the BUDI Diesel transfer eligibility before your next refuelling trip. This gives you time to complete any required verification.
Common mistake:
Do not assume that transferring BUDI Diesel also transfers ownership of the vehicle. The subsidy entitlement and vehicle ownership are separate matters.
BUDI Diesel 2026: What vehicle owners need to know
The key change is who can receive a transfer. From 16 September 2026, eligible actual vehicle users can receive a transferred BUDI Diesel entitlement even if they are not an immediate family member of the registered owner.
The subsidised diesel price is RM2.10 per litre, while eligibility and subsidy usage are managed through the BUDI MADANI mechanism and MyKad.
FAQs
1. When can BUDI Diesel be transferred to another person?
The expanded transfer facility took effect on 16 September 2026, allowing eligible actual vehicle users to receive a transferred entitlement.
2. Can BUDI Diesel only be transferred to family members?
No. From 16 September 2026, the transfer can be made to another eligible individual who actually uses the vehicle, subject to the applicable requirements.
3. Does transferring BUDI Diesel change the vehicle's ownership?
No. The transfer only concerns the diesel subsidy entitlement. The registered owner of the vehicle remains unchanged.
4. How much is subsidised diesel under BUDI Diesel?
The subsidised diesel price announced for BUDI Diesel from 1 July 2026 is RM2.10 per litre.
5. Can the recipient use their own MyKad?
Yes. An approved recipient can use their own MyKad to purchase subsidised diesel according to the transferred entitlement.
6. Is the BUDI Diesel transfer automatic?
No. The recipient must meet the relevant eligibility requirements and complete the required verification process.
7. Where can I check my BUDI Diesel eligibility?
Eligibility and related subsidy matters can be checked through the official BUDI MADANI system.
8. Does transferring BUDI Diesel mean I own the vehicle?
No. BUDI Diesel eligibility and vehicle ownership are separate. A subsidy transfer does not constitute a transfer of vehicle ownership.
9. Can someone who is not a family member receive BUDI Diesel?
Yes, under the expanded rules introduced from 16 September 2026, an eligible actual user who is not an immediate family member can receive a transfer.
10. How can Motorist help diesel vehicle owners?
The Motorist App can help owners keep track of road tax renewal dates and other vehicle ownership tasks, while AutoConcierge provides assistance with vehicle-related matters.
Keep your road tax renewal on track
The Motorist App helps vehicle owners keep track of road tax renewal dates and stay on top of important vehicle ownership tasks. Download the Motorist App and make managing your car easier.
Read More: JPJ blacklist before Deepavali 2026: 5 traps to clear now
Download the Motorist App now. Designed by drivers for drivers, this all-in-one app lets you receive the latest traffic updates, gives you access to live traffic cameras, and helps you manage vehicle related matters.
