M’sia to bear RM7 bln diesel subsidy for April, including RM75 mln boost, as aid expanded for farmers, BUDI recipients

A car filling up diesel at a petrol station in Kuhcing. Photo credit: DayakDaily

By DayakDaily Team

KUCHING, April 14: The Malaysian government is expected to bear about RM7 billion in subsidies for April 2026, including an additional RM75 million, to cover increased diesel assistance for paddy farmers as well as expanded support under the BUDI Agri-Commodity and BUDI Individual Diesel Cash schemes amid prolonged global energy pressures.

As part of the broader adjustment, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said the revised assistance framework includes the BUDI Agri-Commodity rate from RM160 to RM300 per hectare for the 2026 planting season.

“As additional assistance, last year the Madani government also introduced a Harvest Incentive of RM50 per hectare per season to ease the burden of rising input costs,” he said in a statement today.

He added that the BUDI Individual Diesel Cash schemes will also be increased from RM300 to RM400 for April 2026, with payments scheduled for April 21, noting that this is the second upward revision of the assistance following the ongoing crisis.

The expansion is expected to benefit more than 200,000 farmers and smallholders under BUDI Agri-Commodity, with additional funding of about RM20 million per month, as well as around 150,000 individual diesel vehicle owners in Peninsular Malaysia under the Budi Individual Diesel Scheme, with an additional allocation of about RM15 million per month.

The federal government has also relaxed diesel purchase rules, allowing owners of agricultural machinery and equipment to buy diesel exceeding the 20-litre limit by presenting valid machine registration documents.

“The government has agreed to facilitate diesel purchases for non-vehicle uses. The requirement for a special permit for purchases exceeding 20 litres will be relaxed. The government will detail the implementation guidelines in the near future,” he said.

Anwar said the move is aimed at easing operational constraints for farmers and smallholders affected by volatile global fuel prices.

The decision comes as the Madani government continues to respond to sustained disruptions in the global energy market linked to ongoing geopolitical tensions in West Asia, which have pushed refined diesel prices to as high as US$250 per barrel and placed additional pressure on supply chains and domestic subsidy commitments.

He said the government recognises the direct impact of rising fuel costs on households and producers, stressing that targeted assistance remains a key priority to ensure food supply stability and support economic activity.

“The Madani government’s priority is clear: to ensure the security of supply of essential goods for the people, following the sharp rise in oil prices and global supply chain disruptions. The measures announced today involve additional expenditure, including assistance to food producers, to ensure the continuity of food supply for the people,” he added.

The government said that it will continue monitoring global energy developments through the National Economic Action Council and remains prepared to introduce further interventions if volatility in fuel markets persists. — DayakDaily