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.

TL;DR From Sept 16, 2026, BUDI Diesel eligibility can be transferred beyond immediate family to an eligible Malaysian who actually uses the specified diesel vehicle. The recipient must have a valid MyKad, qualify for BUDI95 and pass verification. Vehicle ownership does not change when BUDI Diesel eligibility is transferred. Owners of multiple eligible diesel vehicles can transfer eligibility to up to three other individuals, subject to the number of vehicles registered under their name. Apply by Sept 27 for the transferred eligibility to potentially become usable from Oct 1, 2026, subject to approval.

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.

WHAT CHANGED? BUDI Diesel Transfer Previously From Sept 16 Who can receive a transfer? Spouse, parent, child or sibling who actually uses the vehicle Eligible Malaysian who actually uses the specified vehicle, including those beyond immediate family Transfer scope Restricted to immediate family Expanded beyond immediate family Does vehicle ownership change? No No Verification required? Yes Yes

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.

HOW IT COULD WORK: 4 DIESEL VEHICLES

If four eligible private diesel vehicles are registered under your name:

Vehicle 1 You keep the eligibility Vehicle 2 Transfer to spouse Vehicle 3 Transfer to child Vehicle 4 Transfer to employee Remember: Transfers are limited to a maximum of three other individuals, subject to the number of eligible diesel vehicles registered under the owner's name.

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.

HOW MUCH BUDI MADANI ELIGIBILITY? Basic monthly eligibility 300 litres Additional eligibility for qualifying private diesel pick-ups and jeeps +100 litres Potential monthly total Up to 400 litres Important: Transferring BUDI Diesel eligibility does not transfer legal ownership of the vehicle.

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.

BUDI DIESEL TRANSFER: HOW TO APPLY Applications under the expanded rules opened Sept 16, 2026 WHERE CAN YOU APPLY? ONLINE Apply through the BUDI MADANI portal IN PERSON Submit your application at an LHDN office NEED HELP? MOF says information and assistance are also available at nearby petrol stations SEPTEMBER DEADLINE APPLY BY Sept 27, 2026 ELIGIBILITY FROM Oct 1, 2026 Subject to successful verification and approval. What gets checked? Information concerning the registered owner, recipient and vehicle will be cross-checked against records held by relevant agencies before approval. ALREADY APPLIED BEFORE SEPT 16? ALREADY APPROVED If your transfer was approved before Sept 16, the approval remains final. STILL PENDING Applications that were still pending as of Sept 15 will be returned. Still want to make the transfer? Submit a new application under the revised rules from Sept 16 onwards.

BUDI Diesel Transfer FAQ

Can BUDI Diesel now be transferred to someone who isn't a family member?

Yes. From Sept 16, 2026, eligibility can be transferred beyond immediate family to an eligible Malaysian who is the actual user of the specified diesel vehicle, subject to the required conditions and verification.

Can I transfer BUDI Diesel to anyone I want?

No. The recipient must meet the eligibility requirements, including having a valid MyKad, qualifying for BUDI95 and actually using the specified diesel vehicle. The application is also subject to verification.

Does transferring BUDI Diesel also transfer ownership of the vehicle?

No. The Finance Ministry has explicitly stated that transferring BUDI Diesel eligibility does not involve transferring ownership of the vehicle.

Can I transfer BUDI Diesel for more than one vehicle?

If you have multiple eligible private diesel vehicles registered under your name, eligibility can be transferred to a maximum of three other individuals, subject to the number of eligible vehicles you own and the applicable conditions.

Where can I apply for a BUDI Diesel transfer?

Applications can be made through the official BUDI MADANI portal or at an LHDN office. MOF says further information and assistance are also available at nearby petrol stations.

When should I apply to get the transferred eligibility from Oct 1?

Applications should be submitted by Sept 27, 2026 for the transferred eligibility to be processed for potential use from Oct 1, 2026, subject to successful verification and approval.