KUALA LUMPUR, Oct 16 — The government has not decided on any direction for the country’s natural gas for vehicles (NGV) sector following declining demand.

Deputy Economy Minister Datuk Hanifah Hajar Taib, however, said the government is ready to view the potential of the sector through discussions on platforms such as the National Economic Action Council, taking into account the assessment of Petroliam Nasional Bhd (Petronas) as the sole supervisor of NGV in Malaysia.

"The government is of the view that the use of NGVs should be determined based on the market without government intervention,” she said at the Special Chamber of the Dewan Rakyat today regarding the direction of NGV and its vehicles.

Hanifah said the NGV sector was developed to achieve fuel supply security, but the demand for fuel and NGV-based vehicles has decreased significantly since 2015 driven by the increase in e-hailing services.

NGV vehicles are mainly used by taxi drivers.

She said that following no demand from consumers, Petronas NGV Sdn Bhd (PNGV), a subsidiary of Petronas, is now selling NGV at RM1.05 per litre, much lower than the market price of RM2.77 per litre.

Hanifah said NGV demand is shifting to environmentally friendly alternatives such as Euro 4M, in addition to the increased use of electric vehicles (EV).

She said the government is trying to ensure EVs are affordable for all groups.

Earlier Khoo Poay Tiong (DAP-Kota Melaka) suggested that the government look at the potential usage of NGV while waiting for the EV sector to mature in ensuring the country achieves its net zero carbon emissions commitment of 2050.

Khoo said the existing infrastructure allows the government to expand and develop the NGV sector.

According to him, there are now only 67 NGV stations in Malaysia compared to 179 in 2014. The number of NGV vehicles has also reduced to 30,000 from more than 70,000 at that time. — Bernama