KPDN to expand diesel subsidy aid to cover rural generator users

Matthew assists a driver in refuelling at the Shell petrol station in Petra Jaya during a briefing on the implementation of the Subsidised Diesel Control System (SKDS) and Budi Diesel on July 3, 2026.

By Shikin Louis

KUCHING, July 3: The Ministry of Domestic Trade and Cost of Living (KPDN) will expand diesel subsidy assistance to cover rural generator users, addressing concerns from communities that rely on diesel-powered generators but are currently unable to benefit from the Budi Madani Diesel (Budi Diesel) programme.

KPDN Sarawak director Matthew Dominic Barin said the expansion would address complaints from rural residents, as the current Budi Diesel initiative is tied to diesel vehicle ownership.

“We will implement an expansion for generator users,” he told reporters when asked about concerns raised by rural communities during a press conference at a Shell petrol station in Petra Jaya today.

Matthew said rural communities can currently obtain diesel through the Price Standardisation Programme, under which essential goods including diesel, petrol, cooking oil, flour, sugar and liquefied petroleum gas (LPG) are distributed by appointed transporters to designated points of sale in rural areas.

“If there are complaints about supply, report them directly to us. So far, we have not received any reports of diesel shortages in rural areas,” he said.

Meanwhile, Matthew said KPDN is reviewing requests to widen Budi Diesel eligibility transfers among family members following public feedback since the programme was implemented on July 1.

He said transfers are currently limited to immediate family members, namely spouses, parents, children and siblings.

Responding to a reporter’s question on whether Budi Diesel eligibility transfers could be expanded to include extended family members such as uncles and aunts, Matthew said the matter was still being studied.

“That is currently being studied. We have received many questions and issues, and we understand the concerns,” he said.

Matthew also acknowledged technical issues affecting some applicants, including vehicle owners whose records have yet to appear in the system, preventing them from completing their applications.

“We are taking action to update the records and rectify the problem,” he said.

Clarifying the application process, Matthew said Budi Diesel is intended for private diesel vehicle owners, who only need to submit their identity card details through the Budi Diesel system, which is linked to the Road Transport Department (JPJ) database to verify vehicle ownership.

To raise awareness of the diesel subsidy initiatives, he said KPDN has conducted briefing sessions in Kuching, Sibu, Bintulu, Miri and Limbang involving transport associations, community leaders, village heads, government agencies and rural communities.

He added that registration assistance is also available at all KPDN branch offices throughout Sarawak, and members of the public facing difficulties are encouraged to seek assistance from the ministry. — DayakDaily