The finance ministry said the additional RM100 subsidy was an interim measure that would benefit 340,000 recipients, costing the government around RM102 million.

The RM300 will be deposited into the accounts of recipients from April 8.

Putrajaya first raised the cash aid amount under the BUDI Individu and BUDI Agri-Komoditi schemes from RM200 to RM300 last month.

This followed the Treasury raising the price of diesel in Peninsular Malaysia after crude oil prices surged due to the war in the Middle East.

The finance ministry said the increased diesel subsidy aimed to protect diesel users, especially individuals and those in the agri-commodity sector, from the full effects of global developments.

The ministry added that it is considering medium and long-term measures to ensure the subsidy system is sustainable and benefits the people.

“Since being introduced in May 2024, the BUDI Diesel schemes have helped reduce the cost of living through the distribution of RM1.12 billion in cash aid.

“This targeted approach ensures aid reaches those truly in need while maintaining fiscal discipline amid continuous global pressures,” it said.

Applications for the two BUDI Diesel schemes can be filed here.

Since March 12, the price of diesel in West Malaysia has gone up from RM3.12 per litre to RM5.52 per litre.