Cash aid for diesel users raised to RM400 for April

The finance ministry said in a statement that the additional RM100 will be disbursed on April 21.

The increase will benefit farmers, smallholders and eligible individual diesel vehicle owners, with Budi Agri-Komoditi covering more than 200,000 recipients and Budi Diesel Individu reaching about 150,000 users in Peninsular Malaysia.

The finance ministry also said it would ease diesel purchasing rules for non-vehicle use, allowing owners of agricultural machinery to buy more than 20 litres without a special permit, provided they present valid registration documents.

“The finance ministry is expected to bear subsidies of around RM7 billion for April 2026, including an additional RM75 million for the three diesel subsidy initiatives,” it said.

This marks the second increase in cash aid under the two schemes after diesel prices rose sharply following global supply disruptions linked to the Middle East conflict.

The government had previously maintained the RM300 assistance level for April, up from RM200 earlier, under the same schemes.

Benchmark crude prices have climbed above US$100 per barrel amid continued geopolitical tensions, driving up fuel costs across markets, including Malaysia.

Since March 12, the price of diesel in West Malaysia has gone up from RM3.12 per litre to RM6.72 per litre. Diesel prices in Sabah, Sarawak and Labuan remain subsidised at RM2.15 per litre.

Separately, the finance ministry said the padi cultivation incentive for the 2026 planting season will be raised from RM160 to RM300 per hectare.

“This increase involves additional funding of about RM40 million and is expected to benefit nearly 200,000 padi farmers, some of whom are set to begin planting this month,” it added.