The Tanzanian government has urged private investors to scale up investment in compressed natural gas (CNG) refuelling infrastructure as part of a broader strategy to reduce vehicle operating costs and expand access to affordable energy across the country.
Deputy Minister for Energy, Ms Salome Makamba, said the government plans to facilitate the establishment of 15 large CNG refuelling stations along all major highways in Dar es Salaam by June 2026. The stations are intended to support motorists and public transport operators as demand for cheaper and cleaner fuel continues to grow.
Ms Makamba made the remarks on November 12, 2025, during a visit to the CNG refuelling station at Mlimani City in Dar es Salaam. She noted that the government has already begun constructing large CNG stations in Morogoro, Dodoma, Arusha, Kilimanjaro, and Tanga, which will serve residents in those regions and surrounding areas.
“The goal is to ensure affordable and reliable energy reaches more citizens while at the same time lowering the cost of running vehicles,” she said.
More than Sh12 billion has been invested in the Mlimani City CNG station, which is capable of serving up to 800 small vehicles and three-wheelers daily, as well as 15 heavy trucks that transport gas to smaller refuelling stations. The facility is operated by GASCO, a subsidiary of the Tanzania Petroleum Development Corporation (TPDC).
Ms Makamba said the government under President Samia Suluhu Hassan remains committed to ensuring that Tanzania’s natural resources deliver real and direct benefits to citizens. She highlighted that CNG use has already led to significant savings in transport costs, with one kilogramme of gas retailing at about Sh1,500.
She explained that a 17-kilogramme cylinder can power a vehicle for up to 50 kilometres, making CNG far cheaper than conventional fuels. Given the large number of commercial vehicles and three-wheelers operating in Dar es Salaam, she said the investment offers operators a chance to reduce expenses and increase earnings.
The Deputy Minister encouraged private investors to move quickly to invest in natural gas infrastructure, noting that demand for affordable energy is rising rapidly. She added that recent improvements in the investment environment, including the public-private partnership framework and the One Stop Centre, have made it easier for investors to enter the sector.
Ms Makamba also pointed out that the government continues to prioritise youth empowerment, saying the oil and gas sector directly benefits young people involved in transport businesses, especially motorcycle and three-wheeler operators, due to lower operating costs.
TPDC Managing Director Mr Mussa Makame said the Mlimani CNG station has a total storage capacity of 70,000 kilogrammes, although it currently dispenses about 50 kilogrammes to three-wheelers, small vehicles, and heavy trucks.
“Before this government facility was built, motorists relied on private stations and could spend up to three hours refuelling. Now the process takes about four minutes,” he said.
The government believes that expanding CNG infrastructure through public and private investment will play a key role in improving transport efficiency, reducing fuel costs, and supporting sustainable economic growth.
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