Malaysia's state-owned energy firm Petronas said Thursday it had increased the price of natural gas for vehicles (NGV) by 19 percent.

Effective yesterday, the price of natural gas sold at its service stations would cost 81 sen, up 13 sen from 68 sen, it was quoted as saying by the Bernama news agency.

Petronas said that at 81 sen per litre, the price of NGV is now at 50 percent of the prevailing gasoline price. The hike had been approved by the government last month, it said.

Most users of natural gas are city taxis, who prefer using NGV which is cheaper and more environmentally friendly than diesel or petrol. More recently, Petronas has also been pushing the use of NGV by heavier vehicles like buses and trucks.

Soaring cost

The Malaysian government has raised petrol and diesel prices four times since October 2004 in a bid to cut the soaring cost of its subsidies.

Subsidies for petroleum cost Malaysia RM4.8 billion last year and are expected to reach RM6.63 billion this year due to rising prices.

In September, Deputy Prime Minister Najib Razak told Bernama that Petronas had spent more than RM100 million on subsidies for NGV.