Flexible diesel subsidy coming soon

TAWAU, Aug 16, 2026 – The government is studying several improvements to the targeted diesel subsidy system, with announcements expected in the next one to two months, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

He said measures under review include simplifying the application process, relaxing eligibility for sambung bayar (hire‑purchase transfer) vehicles, and allowing quota transfers to immediate family members. “We are still studying several proposals and will announce improvements soon, particularly in terms of process and eligibility,” he told reporters after the 2027 Budget Engagement Session with industry players.

diesel subsidy

Amir Hamzah added that preparations for the 2027 Budget aim to ensure more effective delivery of assistance, easing cost‑of‑living pressures at the grassroots level. In Sabah, about 120,000 pickup truck and jeep owners are eligible for quotas exceeding 300 litres, but only 49,000 have registered so far.

He urged more eligible owners to apply immediately, noting that facilities and channels are already available. To assist those less familiar with technology, the Finance Ministry has partnered with the Inland Revenue Board, Urban Transformation Centres, and oil companies to provide guidance at counters and petrol stations.

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