Budi Diesel – KPDN removes restriction on sale of subsidised diesel in Sabah, Sarawak and Labuan

The ministry of domestic trade and cost of living (KPDN) has lifted the directive that restricted the sale of diesel fuel for land transport vehicles in Sabah, Sarawak and Labuan, including the volume limits of 50 litres, 100 litres and 150 litres, effective today, Bernama has reported.

The revocation of the directive issued in March this year follows the announcement that the price of subsidised diesel fuel will be standardised at the price of RM2.10 per litre effective today, July 1, 2026, said KPDN director-general for enforcement Datuk Azman Adam.

“All retail licence holders selling petrol or diesel in Sabah, Sarawak and Labuan are advised that the diesel sale restriction directive is no longer in force from that date,” Azman said in a statement, adding that the ministry is confident that the new subsidy mechanism will ensure targeted and efficient distribution of subsidised diesel while facilitating transactions for eligible consumers.

Early access to Budi Diesel for eligible private diesel vehicle owners in Peninsular Malaysia began on June 27, when Malaysian citizens with a valid identity card (MyKad) and driving licence (LMM) owning a privately-owned diesel vehicle with a valid road tax (LKM) gained access to diesel at the same RM2.15 per litre price as those in Sabah, Sarawak and Labuan for a short period of time before the July 1 nationwide implementation of RM2.10 per litre diesel.

The finance ministry said that the Budi Madani portal received more than 18,000 applications for the additional 100 litre subsidised diesel quota as of Sunday, June 28. The diesel fuel subsidy will also be extended to privately-owned diesel vehicles with valid road tax, including vehicles of pick-up and jip body types.

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