The Malaysian government has announced plans to phase out compressed natural gas (CNG) for vehicles and end the sale of natural gas vehicles (NGVs) nationwide.
Transport Minister Loke Siew Fook recently disclosed this during a press conference, as reported by Free Malaysia Today (FMT), a local media outlet.
In Malaysia, CNG is commonly referred to as NGV.
Fook explained that starting July 1, 2025, CNG-powered vehicles will no longer be permitted for registration or use in the country.
Additionally, Petroliam Nasional Bhd (Petronas), the government-owned oil and gas corporation, will begin a gradual cessation of CNG sales at its stations on the same date.
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Fook emphasized that with only 44,383 NGVs—representing just 0.2% of Malaysia’s vehicles (excluding motorcycles)—this phase-out will enhance public safety.
“The NGV tanks in these vehicles are reaching the end of their service life, typically 15 years, and need replacement,” he noted.
He also highlighted the danger posed by some car owners who have modified their vehicles to use liquefied petroleum gas (LPG) cylinders, which have caused explosions during accidents.
An assistance package has been introduced to support CNG vehicle owners during this transition.
Taxi drivers with NGV vehicles are eligible for a one-time RM3,000 e-voucher through the Setel mobile app by Petronas, provided they registered with the Land Public Transport Agency before October 1.
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Dual-fuel vehicle owners can have their NGV kits removed for free at approved workshops, and owners of purely NGV-powered vehicles may receive a one-time payment based on an independent valuation.
These vehicles must also have been registered with the Road Transport Department (JPJ) before October 1 and will be deregistered and scrapped at authorized facilities.
To prevent unauthorized modifications, Fook stated that payments would be processed within three to seven business days of submitting a vehicle’s certificate of destruction and deregistration.
Malaysia adopted CNG in the late 1990s, primarily for taxis and airport limousines.
In contrast, Nigeria is promoting CNG as an alternative transportation fuel, spearheaded by President Bola Tinubu as part of efforts to mitigate the effects of fuel subsidy removal.
This initiative has drawn over $200 million in investments, with plans to establish 1,000 conversion centers across the country.
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