Transport Minister Loke Siew Fook has introduced measures to phase out natural gas (NGV) for vehicles in Malaysia, marking a shift in vehicle fuel standards. Starting from 1 July 2025, vehicles powered by NGV will no longer be eligible for registration in the country, and Petroliam Nasional Bhd (Petronas) will gradually cease NGV sales at its stations from the same date.
In his statement, Loke highlighted safety concerns as the primary motivation, noting that there are currently around 44,383 NGV vehicles in Malaysia, representing a mere 0.2% of the total fleet, excluding motorcycles. Many of these vehicles are dual-fuel models equipped with NGV kits installed between 1995 and 2014, with NGV tanks nearing their 15-year safe usage limit. Loke further mentioned that some car owners have modified vehicles to use liquefied petroleum gas (LPG) cylinders, posing significant risks, as these have caused explosions during accidents.
In support of NGV vehicle owners, an assistance programme will be available during the transition period:
- Taxi Drivers: Those using NGV-powered taxis and registered with the Land Public Transport Agency before 1 October are eligible for a one-off RM3,000 e-voucher through Petronas’s Setel mobile app.
- Dual-Fuel Vehicle Owners: Owners of dual-fuel vehicles can have their NGV kits removed at no cost at workshops designated by the transport ministry. Vehicles must be registered with the Road Transport Department (JPJ) by 1 October to qualify.
- NGV-Only Vehicle Owners: Owners of solely NGV-powered vehicles will receive a one-off payment based on the vehicle’s current value, assessed by an independent appraiser. Upon accepting this offer, vehicles will be sent to an authorised automotive treatment facility for disposal and de-registration by JPJ to prevent misuse or illegal modifications.
Loke assured prompt compensation under this scheme, with payments issued within three to seven working days upon receipt of a vehicle’s certificate of destruction and de-registration slip. Vehicle owners can verify eligibility and apply for these support packages at peralihanngv.com.
