Malaysia Plans Gradual Phase-Out of CNG Vehicles Amid Safety Risks

The Malaysian government announces plans to discontinue CNG-powered vehicles, aiming to enhance road safety

The Malaysian government has set in motion a plan to gradually phase out CNG vehicles across the country due to mounting safety concerns. Starting on July 1, 2025, compressed natural gas (CNG) vehicles will no longer be permitted for new registrations, with the aim of retiring existing ones to protect public safety. Transport Minister Loke Siew Fook highlighted that, under the policy, Petroliam Nasional Bhd (Petronas) will also begin halting CNG sales at its fuel stations in stages.

The phase out of CNG vehicles in Malaysia stems from various safety risks associated with aging NGV tanks. With only 44,383 natural gas vehicles (NGVs) operating in Malaysia, Minister Fook noted that most of these vehicles’ gas tanks have reached the end of their safe lifespan, typically capped at 15 years. He further emphasized that several car owners have dangerously modified their vehicles by using liquefied petroleum gas (LPG) cylinders, leading to incidents where vehicles exploded during accidents.

To assist owners during the phase out of CNG vehicles in Malaysia, the government has introduced support packages. Taxi drivers using NGVs, for instance, are eligible for a one-off RM3,000 e-voucher via Petronas’s Setel app if registered with the Land Public Transport Agency by October 1. Additionally, dual-fuel vehicle owners can have their NGV kits removed at no charge from selected workshops, provided they are registered with the road transport department (JPJ) before October 1.

Owners of vehicles powered solely by NGV systems may receive a one-time payout based on their vehicle’s current market value, as assessed by an independent appraiser. These vehicles must also have been registered with the JPJ before October 1 to qualify for the package, which will involve their disposal at an authorized automotive treatment facility.

In line with the phase out of CNG vehicles in Malaysia, Minister Fook warned against misuse or illegal modifications that could endanger the public. Payments under the support program will be processed within three to seven business days once the vehicles are officially deregistered, and certificates of destruction are issued.

Malaysia’s use of CNG as a transportation fuel began in the 1990s, primarily for taxis and airport limousines. Meanwhile, other countries, such as Nigeria, are currently adopting CNG to reduce reliance on petrol, with plans for substantial investment in conversion centers across the country.