SHAH ALAM, April 14 — The government has enhanced the diesel subsidy assistance by increasing the monthly cash aid for BUDI Agri-Commodity and BUDI Diesel (Individual) from RM300 to RM400 for this month.
The Finance Ministry (MOF) said the assistance will be disbursed on Tuesday (April 21).
“BUDI Agri-Commodity is expected to benefit more than 200,000 farmers and smallholders, with additional funding of approximately RM20 million per month.
“BUDI Diesel (Individual) is expected to benefit around 150,000 individual diesel vehicle owners in Peninsular Malaysia, with additional funding of approximately RM15 million per month,” it said in a statement today.
Meanwhile, the government has also agreed to increase the rate of the Ploughing Incentive for Paddy Farmers (IPKP) from RM160 to RM300 per hectare for this year’s planting season.
The MOF added that the increase involves RM40 million in additional funding, and is expected to benefit nearly 200,000 paddy farmers, some of whom will begin planting this month.
“As additional support, last year the MADANI government also introduced a Harvesting Incentive of RM50 per hectare per season to ease the burden of rising input costs,” it said.
Via these incentives, the MOF is expected to bear subsidies of around RM7 billion for April 2026, including an additional RM75 million for the three diesel assistance initiatives.
At the same time, the government has also agreed to facilitate the purchase of diesel for uses other than vehicles.
The ministry said the requirement for a special permit for purchases exceeding 20 litres will be relaxed.
Accordingly, owners of machinery or agricultural equipment will be allowed to purchase diesel beyond the limit by presenting proof of machinery registration.
“The government will provide further details on the implementation guidelines in the near future,” it said.
