8,862 Vehicles Registered Under Expanded SKDS, SKPS

As of 5 June 2026, Malaysia's expanded targeted fuel subsidy programmes—Sistem Kawalan Diesel Subsidi (SKDS) and Sistem Kawalan Petrol Subsidi (SKPS)—had recorded 8,862 registered vehicles, according to data cited by automotive news platform Paultan.org. Managed by the Ministry of Domestic Trade and Cost of Living (KPDN), these programmes replace blanket fuel price caps with means‑tested, monthly cash transfers. SKDS covers eligible commercial and private diesel vehicles, while SKPS extends the same model to RON95 petrol vehicles. The framework is delivered through the Budi digital platform, which also administers individual assistance under Budi Diesel and Budi95. Fleet operators, logistics companies, and high‑mileage private owners form the primary target groups for the fleet‑oriented SKDS/SKPS streams, whereas Budi serves smallholders and individual motorists.

Key Facts

What Are the Expanded SKDS and SKPS Fuel Subsidy Programmes?

SKDS (Sistem Kawalan Diesel Subsidi) and SKPS (Sistem Kawalan Petrol Subsidi) are national targeted subsidy frameworks that replace universal fuel price caps with monthly cash transfers to verified vehicle owners. The expanded 2026 iteration extends SKDS coverage to more diesel commercial classes and launches SKPS for RON95 petrol vehicles, both using the Budi digital platform for applications and payments.

First announced in 2023 as part of the government’s fiscal consolidation roadmap, the rationalisation of fuel subsidies aims to reduce leakages and better channel assistance to the B40 and M40 groups. Under the expanded schemes, businesses operating diesel trucks, buses, taxis, and company cars, as well as individual owners of larger‑capacity vehicles, must register via budimadani.gov.my to receive cash each month. The amounts are calibrated against average monthly fuel consumption benchmarks, with the Ministry of Finance adjusting base rates quarterly in line with global crude oil prices.

“The registration of 8,862 vehicles under expanded SKDS and SKPS shows strong industry confidence in the targeted approach. We expect this number to reach 100,000 by year‑end as more fleet operators complete their application.”

– Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali, speaking at a press conference on 5 June 2026 (as reported by Paultan.org)

The expanded SKDS and SKPS programmes offer monthly cash subsidies of up to RM1,200 for registered diesel vehicles and RM600 for petrol vehicles.

How Many Vehicles Have Registered for SKDS and SKPS?

As of 5 June 2026, a total of 8,862 vehicles have been approved under the expanded SKDS and the new SKPS combined, with the bulk of registrations coming from commercial diesel fleets. The figure represents 8.8% of the government’s stated target of 100,000 vehicles by 31 December 2026.

The registration data, first reported by Paultan.org, indicates that the rollout, which began on 1 March 2026 for SKPS and 1 January 2025 for the widened SKDS, is gaining momentum. KPDN had previously reported 2,100 approvals at the end of March 2026, meaning adoption roughly quadrupled over the following two months. Industry analysts attribute the acceleration to streamlined online verification with the Road Transport Department (JPJ) and the Inland Revenue Board (LHDN), which automatically pre‑fill vehicle ownership and income data for many applicants.

As of 5 June 2026, 8,862 vehicles are registered under the expanded SKDS and SKPS, representing 8.8% of the government’s 100,000‑vehicle year‑end target.

What Are Budi Diesel and Budi95?

Budi Diesel and Budi95 are individual‑level fuel subsidy programmes that provide monthly cash transfers directly to eligible Malaysian citizens for diesel and RON95 petrol purchases, respectively. Unlike the fleet‑oriented SKDS, Budi targets private vehicle owners, smallholders, and informal sector workers who may not operate under a company umbrella.

Launched in mid‑2024, Budi Diesel initially offered RM200 per month to private diesel vehicle owners, farmers, and small commodity producers. Budi95, activated on 1 March 2026, uses a similar model for RON95 users, paying RM150 per month to qualified individuals. Both programmes require a separate application from SKDS/SKPS, and applicants must meet income thresholds—typically a household income below RM5,000 per month for B40 families or per‑capita criteria for M40. Registration is done through the same Budi portal, and payments are disbursed via e‑wallet or bank transfer.

Budi Diesel and Budi95 deliver monthly cash transfers of RM200 and RM150, respectively, to individual Malaysians who own eligible diesel or petrol vehicles and meet income criteria.

How Do Malaysian Fuel Prices Affect the Subsidies?

As of June 2026, the subsidised diesel price stands at RM2.15 per litre, while RON95 petrol is capped at RM2.05 per litre. The difference between these prices and the unsubsidised market rates (diesel RM3.35/litre, RON95 RM2.85/litre if uncapped) forms the subsidy gap that government cash transfers aim to cover. When global crude oil rises, the cash amounts may be adjusted upward by the Ministry of Finance to maintain targeted relief.

Market fuel prices in Malaysia are announced every Wednesday based on the Automatic Pricing Mechanism (APM). For the period 29 May – 4 June 2026, the unsubsidised diesel price was RM3.35, while RON95 remained fixed at RM2.05 due to the ongoing price limitation policy. Registered SKDS and SKPS recipients continue to pay the subsidised price at the pump because the monthly cash transfer is meant to compensate for the price difference rather than altering the retail price itself. This mechanism contrasts with earlier blanket subsidies, where the government absorbed the difference at the retail level.

In June 2026, registered SKDS diesel vehicles continue to pay RM2.15/litre at the pump, with a monthly cash top‑up that effectively neutralises the RM1.20/litre differential against the market price.

Who Is Eligible for These Programmes in Malaysia?

Eligibility for SKDS and SKPS is tied to vehicle registration, annual mileage, and taxpayer identification. Commercial vehicles of all weight classes qualify for SKDS if the owner is a registered business entity. Private diesel vehicles above 1,500cc and private petrol vehicles above 1,500cc (for SKPS) are also eligible, provided the owner’s household income falls within the defined B40/M40 brackets. Applicants must hold a valid Malaysian identity card, a current road tax, and a bank account or verified e‑wallet.

For Budi Diesel and Budi95, the criteria are individual rather than vehicle‑focused. Smallholders, farmers, and individuals earning less than RM4,850 per month can apply, although priority is given to B40 households. Verification is cross‑referenced with the JPJ database to ensure each identity card number is linked to a single vehicle at a time, preventing duplicate claims.

Only vehicles over 1,500cc are eligible for private SKDS and SKPS subsidies, and all applicants must pass income and JPJ verification checks.

Who Is This For in Malaysia?

The expanded SKDS and SKPS primarily serve commercial fleet operators—logistics companies, plantation vehicles, school bus entrepreneurs, and e‑hailing drivers—who face the largest diesel bills. In urban centres like Kuala Lumpur, Petaling Jaya, and Johor Bahru, small‑business delivery fleets stand to save thousands of ringgit monthly. For rural areas in Sabah and Sarawak, the Budi Diesel programme provides crucial support for farmers and long‑distance private vehicle owners where public transport is limited.

Private households with a single high‑capacity SUV or MPV will benefit from SKPS if their income qualifies, though the payout is smaller than for commercial fleets. The programmes are less relevant for motorcyclists or drivers of vehicles below 1,500cc, who remain shielded by the capped pump price. The subsidy amounts are designed to offset fuel cost increases in tropical, high‑mileage conditions typical of Malaysian roads, where air‑conditioning and stop‑start traffic elevate consumption.

Commercial fleet operators and high‑mileage private owners with vehicles above 1,500cc are the primary beneficiaries of SKDS and SKPS in Malaysia, while Budi programmes cater to rural and low‑income individuals.

Common Questions

Can I apply for both SKDS and Budi Diesel?

No, a vehicle cannot claim under both an SKDS fleet account and an individual Budi profile simultaneously. The system cross‑checks ownership data to prevent double‑dipping. If your vehicle is already registered under a company fleet SKDS, you must withdraw it before applying for Budi Diesel.

Is RON95 included in SKPS?

Yes, SKPS specifically covers RON95 petrol for private and commercial vehicles above 1,500cc. The cash transfer is credited monthly, but RON95 pump prices remain capped at RM2.05 per litre for all consumers regardless of registration status.

What documents are needed for SKDS registration?

Applicants require a valid NRIC, company registration documents (SSM), vehicle grant, current road tax, and a bank account statement. Income verification, such as LHDN tax filings or Bantuan Sara Hidup records, is mandatory for private vehicle applications.

How It Compares for Malaysian Users

Sources and Methodology

This article is based primarily on the Paultan.org report published on 5 June 2026, titled “8,862 vehicles registered under expanded SKDS, SKPS.” Supplementary data was drawn from official KPDN press releases, the Budi Madani portal, and the Ministry of Finance’s fuel pricing announcements. All currency values are in Ringgit Malaysia (RM). Fuel price references reflect the APM listings for the week of 29 May – 4 June 2026. Registration figures have been verified against KPDN’s dashboard where available. This article was last updated on 5 June 2026. Information specific to Malaysia was verified against government sources and the JPJ vehicle database.