The Malaysian government has announced plans to phase out compressed natural gas (CNG) as a vehicle fuel and end the sale of natural gas vehicles (NGVs) by July 1, 2025.
Minister of Transport Loke Siew Fook, according to Free Malaysia Today (FMT), made the announcement, noting that the decision reflects concerns about aging CNG equipment and safety risks posed to road users.
Petroliam Nasional Bhd (Petronas), Malaysia’s state-owned oil and gas company, will begin the gradual discontinuation of CNG sales at its stations starting on the same date. Currently, only 0.2% of Malaysia’s vehicle fleet uses CNG, with the lifespan of many NGV tanks nearing their 15-year safety limit.
The transition plan includes support for affected vehicle owners, particularly taxi drivers, who can receive a one-time RM3,000 e-voucher through the Setel mobile app. Car owners can also have their CNG kits removed for free, and those with fully CNG-powered vehicles may receive compensation based on vehicle value. All affected vehicles will be deregistered and disposed of to prevent potential illegal modifications.
While Malaysia moves to phase out CNG, Nigeria is advancing its own initiative to increase CNG adoption as a cleaner and more affordable alternative to petrol. This effort, led by President Bola Tinubu, comes as part of a strategy to mitigate the impact of Nigeria’s recent fuel subsidy removal on transportation costs.
The government has attracted over $200 million in investments and aims to establish 1,000 CNG conversion centers nationwide.
