The government’s recent decision to phase out natural gas for vehicles (NGV) by July 2025 has left many drivers disappointed and concerned about rising costs.
Several NGV taxi drivers told SunBiz they were unhappy with the move, as NGV has been a much cheaper fuel option than petrol.
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Khairul Zahari, a driver for Taxi Malaysia, said the change would greatly impact taxi drivers. “As a driver, I am deeply affected by this move from the government, as it will increase operating costs significantly for taxi drivers,” he explained. Khairul added that switching to petrol would likely force them to raise taxi fares, affecting both drivers and passengers.
He also criticized the government’s offer of a one-time RM3,000 voucher for NGV drivers, saying it wasn’t enough. “This change will severely impact all taxi drivers relying on NGV,” he added, noting that many have depended on NGV for years.
Another driver, Chandrasekaran Thangaraja, who has driven a taxi since 1996, was also surprised by the decision. “As a taxi driver for so many years, I have been using NGV, and the cost of using petrol is high. It will also be a struggle for me to get to the designated workshop to remove the NGV kit,” he said.
Muhamad Fazli Shaari, another driver, echoed similar concerns, explaining that many drivers paid around RM10,000 to install the NGV kit in their vehicles. “The installation alone was costly, and the RM3,000 voucher does not match what we have invested. Switching to petrol will raise costs for both drivers and passengers.”
Umesh, another driver, said many NGV taxi drivers are unprepared for this transition. “NGV has helped us in many ways, including saving on costs that we bear ourselves. The voucher provided is inadequate, as it is only in voucher form, and RM3,000 is far too little for us,” he said.
The Ministry of Transport announced that starting July 1, 2025, vehicles running on compressed natural gas (CNG), including NGVs, will no longer be allowed on the road. Transport Minister Loke Siew Fook stated that this decision, made by the Cabinet on Oct 2, was necessary for safety reasons, as most NGV vehicles are nearing the end of their fuel tank lifespan.
Minister Loke explained that Malaysia has two main types of NGV vehicles: petrol vehicles converted to run on NGV (dual-fuel) and imported vehicles that use only NGV (mono-fuel). According to the Road Transport Department (RTD), there are currently 44,383 active NGV vehicles, about 0.2% of Malaysia’s registered vehicles.
To help affected drivers, Petronas NGV Sdn Bhd will launch an NGV Vehicle Transition Assistance Programme, offering three main options. Taxi drivers will receive a one-time RM3,000 voucher through the Petronas Setel app to help with the transition. Owners of dual-fuel vehicles can have their NGV kits removed for free at registered workshops, while owners of mono-fuel vehicles will receive compensation based on their vehicle’s value if they scrap it at a licensed automotive treatment center.
Petroliam Nasional Bhd has already begun to phase out retail NGV supply, starting on Oct 1, with full discontinuation planned for mid-2025.
“This measure is to ensure that no NGV vehicles continue to use the fuel after the ban takes effect. This decision prioritizes road user safety and aims to reduce the risk of injury or damage due to the use of NGV vehicles beyond their fuel tank lifespan,” Minister Loke added.