• Demand for CNG vehicles on the rise.
  • Mother CNG filling station in full operation. 
  • Number of private cars using CNG exceeds 5000.

Tanzania demand for Compressed Natural Gas (CNG) vehicles has increased significantly, attributable to the government incentives such as subsidies and reduced import tax. As of last year, authorities in Tanzania announced plans to reduce or fully eliminate import duties on gas-powered vehicles and their components in an effort to encourage the adoption of cleaner energy options. Latest statistics show that these incentives are working.

Recently, Deputy Minister for Energy, Judith Kapinga, informed the National Assembly  that “the government is taking significant steps to promote the use of natural gas in the transport sector.”

Tanzania is also giving incentives to attract domestic and foreign investors for the set up of factories to manufacture the spare parts required for converting regular cars to gas powered vehicles.

Speaking in parliament at the turn of the month, Tanzania’s Deputy Minister for Natural Resources and Tourism, Dunstan Kitandula said not only is the government incentivising the private sector but itself is looking to turn it’s vehicles to use CNG.

Deputy Minister Kitandula said the incentives  are now bearing fruit as several institutions, both public and private, have started to import gas-powered vehicles.

As an example, he cited the government approval of a request from public transport manager UDART to import some 755 gas powered buses. He also said the government is looking to further  reduce tax on all imported CNG vehicles as well as the related conversion equipment.

“The government, though various institutions such as TPDC, Tanzania Revenue Authority and the Ministry of Finance, is exploring areas that can benefit from tax reduction or exemption so that the equipment can be acquired at affordable prices,” he told the House.

Furthermore, Mr Kitandula said TPDC is searching for investors who are ready to establish industries that can produce CNG vehicle conversion kits. The government move is valid as experts note that CNG is more economical than petrol and diesel. For example, the Dar es Salaam Institute of Technology (DIT) reports that a kilogram of CNG currently costs TSh1,500, while a litre of petrol in Dar es Salaam costs TSh2,800.

This means that the government will spend less on fuelling it’s vehicles. Even though the exact annual  government expenditure on vehicle fuel is not readily available, it can be safely assumed that shifting from fossil fuels to natural gas will save the government a considerable amount.

Also, since the switch from regular fuels requires construction of natural gas fuelling stations as well as vehicle transformation as well, jobs will be created in the process.

“During the construction phase, over 300 direct jobs are expected to be created, with more than 200 additional jobs anticipated once the CNG stations are operational,” the House was informed.

Overall, Tanzania is working on both the construction of natural gas receiving centers and the distribution of gas to households, vehicles and industries.

Companies like Rashal Energies, have taken up the opportunity announcing they intend to introduce domestic gas refuelling services to for domestic use.

In his comments to press, the Tanzania Petroleum Development Corporation (TPDC) Managing Director, Mr. Mussa Makame, said shifting from fossil fuels to natural gas will boost economic growth across several levels.

He undersored reduced government expenditures which will leave room for investment in other social services. Further, he also underlined investment opportunities both for local and foreign investors alike as well as job creation for Tanzanians. “Accelerating gas production with a commercial focus and involving the private sector is key to our strategy,” Mr. Makame told press.

As of June 2024, the number of vehicles running on CNG in Tanzania had risen to an estimated 7,000 which includes 3-wheels motorcycles. This is an increase from 1,139 that was reported in 2021/22.

“This growth reflects the rising demand for alternative fuel sources in Tanzania,” Makame attested. Further, in the year 2023/24 Tanzania’s CNG production reached 7,268,161.87 kg of which 5,662,448.20 kg of CNG was used to fuel vehicles which is equivalent to 79 percent of the consumption.

The official said as of last year the refueling rate was approximately 1,919 CNG vehicles on a daily basis. As of April 2025, a total of nine CNG stations became operational, up from just two in 2020/21.

“The government plans to build six more by 2026, and over 60 private companies have also expressed interest in constructing CNG stations,” he summed up.

Read also: Tanzania’s natural gas industry gets global boost with Dubai deal

Tanzania launches CNG mother station in Dar

In line with transition efforts, Tanzania launched a CNG mother station strategically located along the Bus Rapid Transit (BRT) routes near the University of Dar es Salaam. Authorities say the station will serve public and private transport vehicles alike, industries, and institutions as well.

The facility includes a garage for converting vehicles from petrol or diesel systems to CNG which completes the vehicle transformation initiative

Speaking during the launch event, Deputy Minister for Energy Judith Kapinga representing Deputy Prime Minister and Minister for Energy Dr. Doto Biteko called on TPDC to maintain the station and make it a model for quality CNG service delivery in the region.

He explained that the project is meant to cover the entire country, but implementation will be done in phases. “In the past, we’ve had complaints about long queues at CNG stations like the one at Ubungo Maziwa,” the official recalled.

“The opening of this new facility proves the government is walking the talk in solving people’s challenges, especially access to affordable, clean energy,” he said.

“I commend President Samia for continuously addressing citizens’ concerns, and I applaud the TPDC board and management for this important milestone,” the politician added.

Already the station has been tested refuelling several motor vehicles and tricycles, to ensure that all equipment function smoothly.

“The test was successful … we successfully tested its ability to fill up to eight motor vehicles simultaneously, including a large gas truck,” TPDC Project Manager Engineer Lilian Zambi told press at its launch.

“During the process, we also checked other equipment, including compressors and gradually adjusted the pressure to ensure everything was operating efficiently,” she detailed.

The Mother Station project, constructed by TPDC at Mlimani along Sam Nujoma Road, is valued at 14.55 billion, which represents a significant government investment and is a testimony to its energy transition commitment.

The CNG mother station project began in May 2024 and features four gas dispensers and has the capacity to accommodate up to eight vehicles at a time. It includes three loading gantries for CNG tube trailers, which will also serve to distribute gas to smaller stations.

“This mother station will serve smaller stations under construction in various regions, particularly those that currently lack access to gas…these smaller stations will receive their supply through CNG tubes,” the TPDC official detailed.

Eng Zambi explained that refuelling times will vary from 45 minutes to three hours, depending on the size of the containers which range from 10 to 40 feet.

Overall, Dar es Salaam, the country’s commercial hub, currently has four fully operational CNG stations: Ubungo Maziwa, Temeke, Mandela Road and Ilala near the airport.

Officials say the number of citizens converting their vehicles from fuel to gas has increased, with around 5,000 private cars already using CNG.