Malaysia is set to end the use of compressed natural gas (CNG) vehicles, citing public safety concerns, Transport Minister Loke Siew Fook announced during a recent press conference.
The government’s plan will see the registration and operation of CNG-powered vehicles prohibited starting July 1, 2025, effectively phasing out Natural Gas Vehicles (NGVs), as CNG-powered vehicles are known locally. In tandem, Petroliam Nasional Bhd (Petronas), the state-owned oil and gas giant, will begin discontinuing CNG sales at its fueling stations nationwide from the same date, executing this transition in stages.
Safety Concerns and Declining Demand
Minister Loke highlighted that there are currently around 44,383 NGVs on Malaysian roads, a small segment representing just 0.2 percent of the country’s vehicles, excluding motorcycles. However, he expressed growing concerns regarding the age and safety of these vehicles, noting that many NGV fuel tanks have reached or surpassed their 15-year safety lifespan, requiring urgent replacement. This need has spurred the phase-out, which authorities believe will enhance public and road user safety.
Additionally, Loke pointed out that some vehicle owners have begun using liquefied petroleum gas (LPG) cylinders as makeshift fuel sources, a practice that has led to explosions and increased accident risks, underscoring the urgency of the transition.
Transition Support Packages for Affected Owners
The government has unveiled a support package to aid NGV owners through this transition. Notably, taxi drivers using NGVs will receive a one-time e-voucher valued at RM3,000 through the Setel mobile app by Petronas,