The humble NGV be around for a Malaysia without fuel subsidies.
Earlier this month, Cabinet announced the decision to phase out the use of compressed natural gas for natural gas vehicles (NGVs). This decision, made during the Cabinet’s meeting on October 2, 2024, includes the termination of retail NGV supply and the prohibition of new registrations for NGVs, effective from July 1, 2025.
What Are NGV-Powered Vehicles?
Currently, there are two primary categories of NGV-powered vehicles in Malaysia:
1. Dual-fuel Vehicles: Petrol-powered vehicles that have been modified with kits to use both petrol and NGV fuel. This category comprises the majority, making up over 95% of all registered NGV vehicles.
2. Mono-fuel Vehicles: Imported vehicles designed specifically to run on NGV fuel only.
As of the latest records, there are approximately 44,383 active NGV vehicles in Malaysia, including taxis, private cars, buses, and trucks. Despite this number, NGV vehicles represent only 0.2% of the total registered vehicles in the country (excluding motorcycles).
Why The Ban Of NGVs?
The Cabinet’s decision to halt the registration and licensing of NGV-powered vehicles stems from concerns over safety. The majority of NGV vehicles were converted between 1995 and 2014, and many of these vehicles now have NGV tanks that have reached the end of their safe usage life. Additionally, some vehicles use modified gas cylinders, which pose significant explosion risks.
To ensure the safety of all road users, the government has implemented the following measures:
• No new NGV Vehicle Registrations: Starting July 1, 2025, no new NGV-powered vehicles, whether dual-fuel or mono-fuel, will be allowed to be registered or licensed for road use.
• Retail NGV Supply Termination: PETRONAS will phase out the retail supply of NGV in Malaysia, with full cessation by July 1, 2025.
NGV Vehicle Transition Assistance Program
To ease the transition for NGV vehicle owners, PETRONAS NGV Sdn Bhd (PNGV) has launched a comprehensive transition assistance program. This program offers financial support and services for affected vehicle owners, particularly NGV taxi operators, and those with dual-fuel or mono-fuel NGV vehicles. The program includes:
1. RM3,000 e-Voucher for NGV Taxi Drivers: Eligible taxi drivers will receive a one-time RM3,000 e-voucher through the Setel app to help with the transition to alternative fuels.
2. Removal of NGV Kits: Owners of dual-fuel vehicles, including NGV taxis, can receive financial support for the removal of NGV kits from registered workshops.
3. Mono-fuel Vehicle Scrapping: Owners of mono-fuel NGV vehicles will receive a one-time payment based on the current market value of their vehicles, with the mandatory requirement to scrap and deregister them.
Applications for these assistance packages can be made through the official website, www.peralihanngv.com, with specific deadlines for each package.
The Transition Timeline
The phasing out of NGV retail supply will begin on October 1, 2024, and be fully completed by the second quarter of 2025. Starting July 1, 2025, all dual-fuel vehicles will automatically have their registration changed to petrol-only use, with adjustments made to their road tax fees (LKM).
For more details on the NGV Vehicle Transition Assistance Program, including eligibility and application processes, visit www.peralihanngv.com or contact MESRALINK at 1-800-88-8181 or via email at [email protected].
