BUDI Diesel quota increase for 200,000 utility vehicle owners

 The finance ministry says the monthly quota of subsidised diesel for these vehicle owners is raised from 200 litres to 300 litres beginning this month.

The response to BUDI Diesel has been encouraging, with more than 238,000 users benefitting from it since its implementation last week, according to the finance ministry. (EPA Images pic)

PUTRAJAYA:

Nearly 200,000 owners of utility diesel vehicles have been approved for an additional 100 litres of subsidised diesel per month under the BUDI Diesel programme, the finance ministry said.

In a statement, the ministry said the approval raises recipients’ monthly subsidised diesel quota from 200 litres to 300 litres, from this month, for more than 174,000 recipients in Peninsular Malaysia and over 22,000 in Sabah, Sarawak and Labuan as of yesterday.

The ministry said it took into account the higher needs among owners of pickup trucks and utility vehicles used for small and medium business use, as well as travel to rural and remote areas.

Separately, finance minister II Amir Hamzah Azizan said the additional allocation would help vehicle owners better manage their monthly diesel needs.

“The government understands that diesel pickup and utility vehicles are not just for daily commuting, but are also used to earn a living and manage family needs,” he told reporters in Kota Kinabalu today.

Amir said public response to BUDI Diesel has been encouraging, with more than 238,000 users benefitting from it since its implementation in Peninsular Malaysia on June 27 and in Sabah and Sarawak on July 1.

He said more than 2,000 applications for the transfer of BUDI Diesel eligibility had been received through the BUDI Madani portal so far.

The government had introduced a quota-transfer facility allowing the subsidy to be utilised by the actual vehicle user rather than the registered owner. The original BUDI Diesel recipient may apply to transfer eligibility through the BUDI Madani portal or vehicle users may update the ownership records with the road transport department (JPJ).

A three-month exemption on ownership transfer fees has been granted from July 1.

Amir said more than 336,000 diesel transactions had been recorded at the start of BUDI Diesel early access between June 27 and July 4, involving the purchase of 12.6 million litres of subsidised diesel and government subsidies amounting to more than RM23 million.

“These sales encompass the purchase of subsidised diesel at RM2.15 per litre during early access and RM2.10 per litre since the full implementation of BUDI Diesel on July 1,” he said.

On savings generated through the programme, Amir said it was still too early to provide a precise figure as transaction data was still being collected and verified.

However, based on feedback from petrol station operators, diesel sales volumes had declined slightly, likely due to reduced purchases by those not eligible for the subsidy.

He expressed confidence that the programme would generate significant savings, enabling the government to channel more funds into assistance programmes for the people. - FMT