The ongoing instability in the Middle East has disrupted the global fuel supply chain, prompting Tanzanian motorists to seek cheaper alternatives. The number of vehicles using Compressed Natural Gas (CNG) has increased nearly fourfold to over 20,000 in just three years. This shift is attributed to rising fuel prices since 2023, following the Russia-Ukraine war and recent conflicts involving Israel, the US, and Iran. As a result, motorists, particularly car and auto rickshaw owners, are turning to CNG as a more affordable option.
According to Tanzania Petroleum Development Corporation (TPDC) Executive Director Mussa Makame, the number of CNG-powered vehicles has risen from about 5,000 three years ago to over 20,000 currently. He cited the growth in CNG use as a response to higher fuel prices. The increase in CNG adoption has been accompanied by a rapid expansion of refuelling infrastructure. Three years ago, Tanzania had only about three operational CNG stations, but this number has since increased to approximately 15.
The expansion of CNG infrastructure is set to continue, with three additional stations at various stages of completion. By the end of 2026, Tanzania is expected to have a total of 18 CNG stations. TPDC plans to extend CNG services to more regions, including Mwanza, Dodoma, Tanga, Kilimanjaro, and Arusha, during the first phase of expansion next year. The goal is to extend the service across the country within the subsequent two years.
For some motorists, the shift to CNG has provided relief from rising fuel costs. Henry Swai, a special-hire driver in Dar es Salaam, switched to CNG after his employer agreed to convert his vehicle. He reported improved earnings and a more sustainable business. Similarly, Amina Issa, an employee of a private company in Dar es Salaam, spends about 40,000/- a week on CNG, compared to over 130,000/- she estimates she would spend if her vehicle used petrol.
Tanzania is also advancing major investments in the natural gas sector, including the long-awaited Liquefied Natural Gas (LNG) project. The 42-billion-US-dollar project has entered its final legal stage after the government and investors concluded negotiations on key commercial, tax, and revenue-sharing issues. The project, planned for Likong’o in Lindi Region, is expected to move to implementation during the current financial year once the remaining legal processes are completed.
According to Mr. Makame, the government negotiating team has concluded discussions with international energy companies on key commercial matters. The remaining legal procedures will pave the way for the agreements to be submitted to the government and Parliament in accordance with relevant legislation. This development underlines Tanzania’s growing reliance on its natural gas resources, both as an alternative fuel for motorists and as a strategic component of the country’s broader energy and investment ambitions.
The growth in CNG use and the advancement of major natural gas projects demonstrate Tanzania’s efforts to leverage its natural resources to address energy needs and economic challenges. As the country continues to expand its CNG infrastructure and implement large-scale projects like the LNG project, it aims to enhance energy security, reduce fuel costs, and promote sustainable economic growth.
Key points
- The number of CNG-powered vehicles in Tanzania has increased nearly fourfold to over 20,000 in three years.
- Tanzania is set to have a total of 18 CNG stations by the end of 2026.
- The 42-billion-US-dollar LNG project has entered its final legal stage and is expected to move to implementation during the current financial year.
