Ewura set to announce the new compressed natural gas (CNG) prices by March

Dar es Salaam. The new prices for compressed natural gas (CNG) used to fuel vehicles are expected to be announced by March this year, Energy and Water Utilities Regulatory Authority (Ewura) has said.

The regulator proposed lower prices after investors expressed interest to build more filling stations across the country.

Last July, Ewura proposed the prices to go down to Sh1,242 per kilogramme from the current Sh1,550, to encourage use of the locally produced natural gas in vehicles.

The regulator came up with proposals after receiving inquiries from prospective investors who wanted to invest in CNG filling stations in the country.

The increase of petroleum prices also made it more attractive to convert vehicles from using conventional fuels.

Ewura director general Modestus Lumato said yesterday that the whole process was complete, including the analysis of the benefits and scrutinization of opinions from stakeholders.

He added that the new prices are awaiting the approval of no objection from the Ministry of Energy before they could be announced.

The proposed prices will cover three regions of Dar es Salaam, Coast and Morogoro after considering all value chain costs as well as profit margins.

The process of setting the prices started last June and was completed by September.

Currently, there are only three CNG points located in Dar es Salaam.

However, plans are underway by the Tanzania Petroleum Development Corporation (TPDC) to build five new filling stations along Sam Nujoma Road, Ferry, Muhimbili, Kibaha and Ubungo.

“The progress is good. We have submitted the proposals to the Ministry of Energy for approval and we expect to announce the new prices anytime between now and March,” Mr Lumato told The Citizen.

He said that in order to solve the challenge of the gas shortages in filling stations, the authority has already approved two proposals from investors who will build two stations along Sam Nujoma road and Gongolamboto area.

“We have received proposals from 14 investors who have expressed interest in engaging in the CNG business, of which two have already been approved and construction is underway,” he noted.

He also welcomed others who want to invest in CNG, urging motorists who wish to convert their cars to natural gas to stay tuned as more filling stations would be built soon.

“We are continuing with the process of reviewing the requests,” he said.

During the stakeholders meeting to collect views in June last year, stakeholders said that increasing the pace of shifting to CNG would require more government mobilisation, coupled with reviewing the country’s policies to facilitate the commissioning of more filling stations.

During the meeting, Ewura Consumer Consultative Council (Ewura CCC) chairman Goodluck Mmari said that more research should be carried out by the regulator to come up with prices that will reflect the current situation.

“The work done is good but it is not complete. There isn’t enough clarity and if you consider this business in Tanzania, it is still a challenge. So, if this price is used, then it should be temporary until further analysis is done,” he said.