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The Malaysian government has revealed plans to gradually eliminate the use of compressed natural gas (CNG) in vehicles and to discontinue the sale of natural gas vehicles (NGVs) nationwide.
Loke Siew Fook, the Minister of Transport, made this announcement at a press conference on Thursday, November 7 due to the risks involved in CNG powered vehicles.
He stated that, starting from Tuesday, July 1, 2025, CNG-powered vehicles will no longer be allowed to be registered or used in Malaysia.
The transport minister also mentioned that Petroliam Nasional Bhd (Petronas), which is the state-owned oil and gas company, will gradually cease the sale of CNG at its stations from that date.
The minister explained that this move will help improve the safety of both raise users and the public.
“The NGV tanks of these vehicles are now reaching the end of their service life and need to be replaced and NGV tanks typically have a safe usage period of 15 years,” Fook said.
He also mentioned that some car owners have modified their vehicles to run on liquefied petroleum gas (LPG) cylinders, which are highly dangerous.
The minister stated that these vehicles have caused explosions in accidents.
Fook added that a support package has been introduced to assist owners of CNG-powered vehicles during the upcoming transition period.
“Taxi drivers using NGV vehicles are eligible for a one-off RM3,000 e-voucher through Petronas’s Setel mobile app.
“They must have been registered with the Land Public Transport Agency before October 1.
“For dual-fuel vehicle owners, they can get their NGV kits removed for free at workshops selected by the transport ministry.
“Their vehicles must be registered with the road transport department (JPJ) before October 1.
“Lastly, for owners of purely NGV-powered vehicles, they are eligible for a one-off payment based on the current value of their vehicles, which will be determined by an independent appraiser.
“For this package, the vehicles must also have been registered with JPJ before October 1.
“Upon taking up the offer, the vehicles will be sent to an authorised automotive treatment facility to be disposed of and deregistered by JPJ,” He added.
Fook stated that it is essential to prevent the misuse of vehicles or any illegal modifications, as such actions could pose a risk to the public.
He also mentioned that payments under the support package will be processed within three to seven working days after receiving the vehicle’s certificate of destruction and deregistration slip.
Malaysia began using compressed natural gas (CNG) in the late 1990s for taxicabs and airport limousines.
The federal government (FG) of Nigeria is advocating for CNG to be used as an alternative fuel for transportation.
This initiative, introduced by President Bola Tinubu to mitigate the effects of the removal of the petrol subsidy on citizens, has already attracted over $200 million in investments.
The government plans to establish 1,000 conversion centers across the country.
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