BUDI Diesel Can Now Be Transferred Beyond Family - Here's How It Works

If you're the one actually driving a private diesel vehicle but it isn't registered under your name, the latest BUDI Diesel changes could be important for you.

Effective Sept 16, 2026, registered owners of eligible private diesel vehicles can transfer their BUDI Diesel eligibility to the person who actually uses the vehicle, even if that person isn't an immediate family member.

Previously, transfers were restricted to a spouse, parent, child or sibling who was the actual user of the vehicle.

And here's perhaps the most important bit: transferring your BUDI Diesel eligibility does not transfer ownership of the vehicle.

BUDI Diesel Transfers Are No Longer Just For Family 

The previous system already recognised that the person driving a diesel vehicle every day isn't necessarily its registered owner.

However, the transfer mechanism was limited to immediate family members. This meant an eligible registered owner could transfer the ability to purchase subsidised fuel to their spouse, parent, child or sibling, subject to the required conditions and verification.

That's now been expanded.

Under the new rules, a registered owner can transfer the eligibility to any Malaysian citizen with a valid MyKad who qualifies for BUDI95 and is the actual user of the specified diesel vehicle.

Once approved, the recipient gets their own monthly eligibility and can use their MyKad when purchasing subsidised fuel.

So no, this doesn't mean you can simply transfer your BUDI Diesel eligibility to anyone you like. The owner, recipient and vehicle information will be cross-checked against records from the relevant agencies before approval is granted.

Own More Than One Diesel Vehicle? There's Another Change 

The new rules also give owners of multiple eligible private diesel vehicles more flexibility.

If you have several private diesel vehicles registered under your name, you can transfer the eligibility attached to them to up to three other individuals, depending on the number of eligible vehicles you own.

Here's the example given by MOF.

If four eligible diesel vehicles are registered under your name, you could keep the eligibility for one vehicle and transfer the other three to their actual users.

Each approved recipient would receive the monthly eligibility associated with the vehicle they actually use.

There are two important restrictions to remember: each vehicle's eligibility can generally only be transferred once, and a recipient can only receive transferred eligibility from one registered owner.

Once approved, the transfer generally can't be reversed or passed on to someone else, except under specific circumstances determined by the government.

Why Did The Government Change The Rules?

According to the Finance Ministry, the changes follow feedback received by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, particularly from diesel vehicle users in Sabah and Sarawak.

MOF highlighted two situations in particular:

• Vehicles bought through "sambung bayar" arrangements, where the actual user may not be the registered owner.
• Households with several diesel vehicles registered under one person's name, even though different people actually use them.

The changes are also relevant to private diesel pick-up and jeep users.

The changes are also relevant to private diesel pick-up and jeep users, particularly given their monthly BUDI MADANI eligibility.

MOF's reference to "sambung bayar" explains one of the situations behind the policy change. It does not mean the BUDI Diesel transfer itself changes whose name the vehicle is registered under.

How Do You Apply For A BUDI Diesel Transfer?

If the new rules apply to you, here's how to make the transfer.