Minibuses running on liquefied petroleum gas (LPG) could be on the streets by next summer if operators agree to a one-off grant to switch to the new vehicles, sources say.
It is understood the Government concluded after a six-month trial ending in January that LPG minibuses should be brought in.
It was also satisfied with electric minibuses, which were also tested, even though they faced technical problems, a source said.
The Government is understood to prefer offering a one-off cash grant, the amount yet to be decided, to operators to encourage them to switch to LPG minibuses.
Diesel vans cannot be converted to LPG and operators must buy new ones. LPG and diesel minibuses cost about $300,000.
The same grant could apply to electric minibuses if the Government approves them. Officials last year offered a $40,000 subsidy to each taxi converting to LPG.
But another source said the Government did not agree to minibus operators' demands to increase the number of seats in their vehicles from the current limit of 16 passengers.