Malaysia Plans to Ban CNG Vehicles by 2025 Due to Safety Risks

Malaysia to Phase Out Compressed Natural Gas Vehicles by 2025, Offers Transition Support for Affected Owners

Malaysia has announced plans to discontinue the use of compressed natural gas (CNG) for vehicles, ending the sale of natural gas vehicles (NGV) by mid-2025. Minister of Transport, Loke Siew Fook, shared this decision during a recent press briefing, emphasizing that no new CNG vehicles can be registered or used in the country starting July 1, 2025.

Petroliam Nasional Bhd (Petronas), Malaysia’s national oil company, will begin a phased cessation of CNG sales at its stations on the same date. The move, according to Minister Fook, aims to enhance public safety by eliminating aging NGV tanks that could pose a hazard. Currently, about 44,383 NGVs operate in Malaysia, representing a small 0.2 percent of the nation’s vehicles.

The ministry’s decision also addresses the risks posed by some vehicle owners modifying their cars to use liquefied petroleum gas (LPG) cylinders, which has reportedly caused explosions during accidents.

Transition Support for CNG Vehicle Owners

To aid in the transition, the government has introduced a support package for affected vehicle owners:

1. Taxi Drivers: Registered taxi drivers using NGVs will receive a one-off RM3,000 e-voucher via Petronas’s Setel app.
2. Dual-Fuel Vehicles: Owners of dual-fuel vehicles can have their NGV kits removed for free at designated workshops.
3. Pure NGV Vehicles: Owners of purely CNG-powered vehicles can receive a one-off payment based on their vehicle’s current appraised value. These vehicles, after being deregistered, will be disposed of at authorized facilities to prevent illegal modifications.

Eligible vehicle owners must have registered with the Land Public Transport Agency (APAD) or the Road Transport Department (JPJ) by October 1 to access the support package. Payments will be processed within three to seven working days after receiving proof of vehicle destruction and deregistration.

Contrasting Developments in Nigeria

While Malaysia phases out CNG, Nigeria is ramping up its adoption. President Bola Tinubu’s administration has introduced CNG as a transportation fuel to mitigate the effects of fuel subsidy removal. This initiative has already attracted over $200 million in investments, with plans to establish 1,000 conversion centers across Nigeria.