15th April 2026 - 3 min read
The Finance Ministry has announced an enhanced package of subsidies and cash assistance for diesel users and paddy farmers, with the next round of payouts scheduled for 21 April 2026. If you drive a diesel vehicle in peninsular Malaysia, run agricultural machinery, or farm paddy, your monthly payout is going up.
Prime Minister Datuk Seri Anwar Ibrahim, who also holds the finance portfolio, said the new measures involve additional spending to keep food production steady amid rising global energy costs.
Both Budi Agri-Komoditi and Budi Individual Diesel will be raised from RM300 to RM400 per month, starting with the April 2026 payment. It is the second increase since global fuel prices began climbing.
Budi Individual Diesel reaches around 150,000 individual diesel vehicle owners in Peninsular Malaysia. Budi Agri-Komoditi covers more than 200,000 farmers and smallholders. The 21 April disbursement will be the first to reflect the higher amount.
The Ministry of Finance expects to carry roughly RM7 billion in subsidies for April alone, including an extra RM75 million for the expanded assistance.
The government has also relaxed the rules on buying diesel for non-vehicle use. Previously, anyone buying more than 20 litres at a time needed a special permit. Under the new arrangement, owners of agricultural machinery and equipment can purchase larger volumes by showing their registration documents at the point of sale.
The Finance Ministry said detailed implementation guidelines will be issued soon.
Paddy farmers are also getting a boost. The Paddy Cultivation Incentive, known as IPKP, will rise from RM160 to RM300 per hectare for the 2026 planting season, just as some farmers begin planting this month.
The increase comes with an extra allocation of around RM40 million and is expected to reach close to 200,000 paddy farmers nationwide. It sits on top of the existing Harvest Incentive of RM50 per hectare per season, which was introduced earlier to help offset rising input costs such as fertiliser, seed, and fuel.
If you own a diesel vehicle, the extra RM100 a month adds up to RM1,200 a year. At current pump prices, that’s enough to cover two to three full tanks for a typical pickup truck or SUV.
If you run tractors, harvesters, or irrigation pumps, the permit rule for diesel purchases above 20 litres has also been relaxed. You won’t need to deal with the permit process during planting and harvesting season, which has been a friction point in previous years.
If you’re a paddy farmer, the IPKP rate has jumped from RM160 to RM300 per hectare. With five hectares, you now receive RM1,500 in IPKP support per season instead of RM800. That’s before your separate Harvest Incentive is factored in.
The government, through the National Economic Action Council, has said it will continue monitoring developments in West Asia and may introduce further measures if conditions worsen. If you qualify under either Budi scheme or the IPKP, check your bank account on 21 April, and keep your registration documents ready if you plan to fill up beyond the old 20-litre limit.
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As a creative content writer, Eloise has covered finance, business, lifestyle topics, and even moonlights as a singer-songwriter outside of RinggitPlus. Her current interests are learning the best ways to optimise spending and credit card hacks to gain more airline miles.
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