KUCHING: Petronas is expected to offer Natural Gas for Vehicle (NGV) at 200 of its stations throughout the country, including Sarawak and Sabah, by 2010.

“Petronas has given its commitment,” Deputy Minister of Science, Technology and Innovation Fadillah Yusof said yesterday.

“Hopefully, Petronas can go through with the masterplan for 200 stations with NGV by 2010, which will cost the conglomerate some RM1million to install NGV at each station,” he added

The state government and state Commercial Vehicle Licensing Board (which Fadillah used to lead) had been making the request since last year.

NGV is sold at only 70 sen per litre, which makes it the cheapest form of energy, even if a RM6,000 modification for each vehicle is required. NGV has been available in West Malaysia for years now, and is mostly consumed by taxi operators.

Following the June 4 fuel price hike, a group of three taxi associations in the state has grown vocal on the matter. They told a press conference here recently that NGV would offer ‘long term benefits’ to the transportation industry.

“Local MPs will continue to debate on the matter during this session of Parliament. We want Petronas to offer NGV in Sarawak and Sabah as a form of corporate social responsibility.”

In reality, Petronas will incur considerable losses for every litre of NGV that it sells because 70 sen per litre of gas is way below the market price.

Asked if there were indications Petronas might increase NGV prices as part of the expansion exercise, Fadillah said it was probable.

“Although the government has said that the present fuel prices will remain for the rest of the year, the way I see it, all kinds of fuel will be sold at the market price eventually,” Fadillah said.

The continued price disparity between Malaysian fuel prices and its neighbours encourages too much ‘leakage’.

“Actually, I was told that NGV used to be available in Miri a long time ago. Demand was not good so the station closed down,” Fadillah said.

Nonetheless, the deputy minister said he hoped NGV would be made available in Kuching, Bintulu, Sibu and Miri when the masterplan was fully implemented.

On a related matter, Fadillah said Petronas should consider operating mini stations in the interior parts of East Malaysia.

On the prices of fuel in the rural areas, he said: “Yes, it is more expensive there because of the transportation cost. If Petronas takes up operation of these mini stations, perhaps prices can be standardized if it absorbs the additional transportation cost.”

He added that Deputy Chief Minister Datuk Patinggi Tan Sri Alfred Jabu was heading a committee looking into this (NGV) matter.