Kuala Lumpur: Yesterday, I attended a briefing session by the Ministry of Finance on the implementation of Budi Diesel, whereby the blanket subsidy on diesel for Sabah and Sarawak will be replaced with a targeted subsidy in line with the nationwide implementation of the targeted subsidy policy via the said Budi Diesel.
Under the Budi Diesel subsidy system, owners of diesel-fuel motor vehicles will be accorded a monthly quota of 200 litres of subsidised diesel at RM2.10, with owners of pick-up trucks and jeeps entitled to apply for an additional 100 litres.
In addition, certain logistics players are also entitled to apply for SKDS fleet cards, which allow them to purchase subsidised diesel.
For these SKDS fleet card holders, cargo lorries, rigid trucks, prime movers, and panel vans are entitled to purchase a monthly quota of diesel at RM2.15 per litre, while school buses/vans, buses, and express buses are entitled to purchase diesel at RM1.88 per litre.
I was also informed in the briefing that the implementation of the targeted subsidy via Budi Diesel in Sarawak was approved by the Cabinet, where all the ministers from Sarawak have no objection thereto. As such, the government went ahead with the implementation thereof in Sarawak, and thus, the announcement of the Prime Minister.
Therefore, given that the ministers from Sarawak, sitting in Cabinet, have NOT objected to the implementation of the scheme in Sarawak, it will be implemented starting 1 July 2026.
Nevertheless, in the meeting, I maintained that given the vastness of area in Sarawak and the reliance on diesel motor vehicles, a monthly quota of 300 litres would not be sufficient for those staying in the city outskirt areas. Furthermore, the current categories of recipient of the SKDS fleet card allowance DO NOT include the tipper truck owners carrying gravels, sand and earth.
As such, I have conveyed and fought for the increment of the monthly quota of 300 litres to 500 litres for Sarawak and to include the tipper truck owners in Sarawak as the recipient of the SKDS fleet card allowance so that they will not be burdened with the increased cost of unsubsidised diesel prices.
Chong Chieng Jen
DAP Sarawak Chairman
Stampin MP
24 June 2026
