4,146 petrol stations ready nationwide for Budi Diesel rollout, two key improvements announced

8 hours ago 6

ADVERTISE HERE

By DayakDaily Team

KUCHING, June 27: A total of 4,146 petrol stations nationwide are ready for the full implementation of the Budi Madani Diesel (BUDI Diesel) subsidy mechanism, alongside two key improvements introduced by the federal government to strengthen the diesel subsidy rationalisation system.

Minister of Domestic Trade and Cost of Living Datuk Armizan Mohd Ali said the readiness was confirmed following close cooperation between the government and 10 oil companies, ensuring nationwide retail infrastructure is prepared ahead of the full rollout on July 1, 2026.

The companies involved include PETRONAS, Shell, Petron, Caltex, BHPetrol, along with Five, Smart Stream, Xcel, PETROS and IPTB.

“The implementation is being carried out through a pilot phase starting today in Peninsular Malaysia, where eligible recipients are able to purchase subsidised diesel at RM2.15 per litre using MyKad verification or digital applications, before the official subsidised price of RM2.10 per litre takes effect nationwide on July 1,” he said in a statement foloowing a visit to Shell Station at Precinct 18 in Putrajaya today.

He added that the pilot phase is aimed at ensuring system stability, particularly at petrol station level, including transaction systems, MyKad authentication processes, digital application integration, staff readiness, and customer service efficiency.

At the same time, Armizan said the Cabinet, in its meeting on June 26, reviewed the progress of the broader fuel subsidy rationalisation framework, which includes Budi Diesel, BUDI95, the Controlled Diesel Subsidy System (SKDS), and the Controlled Petrol Subsidy System (SKPS).

“The government has also approved two key improvements to the diesel subsidy mechanism under the ministry’s jurisdiction.

“First, the subsidy will be expanded to include small traders using diesel vehicles such as jeeps and pickup trucks registered under business or company names, classified under private business usage,” he explained.

Previously, eligibility was limited to individual-registered vehicles under Budi Diesel and commercial freight vehicles under SKDS.

“Second, fixed quota allocations for selected goods transport vehicles under SKDS will be reviewed and adjusted based on broader technical and operational factors,” he added.

The factors include gross vehicle weight, engine capacity, vehicle category, fuel consumption levels, and usage patterns, in addition to existing average usage assessments.

Armizan said the improvements are intended to better reflect real-world usage while reducing leakage and ensuring more targeted subsidy distribution.

“The Ministry of Domestic Trade and Cost of Living (KPDN), together with the Ministry of Finance and Ministry of Transport, has been instructed to immediately coordinate implementation measures, including system integration and any necessary upgrades to existing delivery mechanisms,” he said. — DayakDaily

Read Entire Article