Dar es Salaam. Traffic congestion for users of gas-powered vehicles may soon ease following an increase in gas refuelling stations, analysts say, noting that the benefits extend beyond just this group.
Using natural gas in vehicles typically reduces costs by up to 50 percent compared to diesel and petrol.
Gas is sold at a lower price, its consumption is more efficient and vehicles require less frequent maintenance due to lower smoke emissions.
On March 3, 2025, the Tanzania Petroleum Development Corporation (TPDC) announced that seven new gas refuelling stations are under construction in Dar es Salaam, addressing the existing shortage.
These stations include TAQA Dalbit Tanzania along Bagamoyo Road, Energo Tanzania Limited on Coca-Cola Road, Puma Energy Tegeta IPTL, Puma Energy Mbezi Beach - Tangi Bovu, Puma Energy Mabibo External, BQ Constructors on Goba Road, and Tanhealth Jangwani Beach Mbezi.
TPDC’s Director of Planning and Investment, Derick Moshi, provided an update during a tour by the TPDC Board of Directors to inspect the construction of a gas refuelling station on Sam Nujoma Road near the University of Dar es Salaam.
“These seven stations are expected to be completed by the end of 2025. Currently, we have six gas refuelling stations nationwide, four of which serve cars and three-wheelers, while two cater to Dangote’s fleet,” he said.
Moshi added that for the fiscal year 2024/2025, two additional gas refuelling stations owned by TAQA Dalbit and TPDC will be commissioned.
Speaking about the gas refuelling station on Sam Nujoma Road, Moshi confirmed that construction is complete and that system checks are underway to ensure safety.
“The station is largely complete, and gas is already available. What remains now is vehicle testing,” he said.
The Mlimani gas refuelling station project aligns with the government’s efforts to promote alternative energy sources and reduce operational costs for gas-powered vehicle users.
TPDC Board Member Paul Makanza expressed satisfaction with the implementation of gas projects.
“As a board, we are pleased with the progress of this project. Its expansion will significantly contribute to the national economy by reducing reliance on petroleum,” Makanza stated.
According to TPDC, the construction of the University of Dar es Salaam gas refuelling station costs Sh14.55 billion. Once completed, the station will have the capacity to compress gas for three transport trucks and refuel up to 1,000 vehicles per day.
TPDC reports that the station’s equipment can compress up to three million cubic feet of gas daily, serving both vehicles and industries, including the Kairuki pharmaceutical factory in Kibaha, Pwani Region. The station will feature four gas pumps capable of refuelling eight vehicles simultaneously.
Development and political affairs analyst Dr Onesmo Kyauke hailed the increase in gas refuelling stations as a positive step that will reduce fuel imports.
“Reducing fuel imports will also lower foreign exchange expenditure, thereby strengthening our currency. Additionally, this expansion will create job opportunities, particularly for young people in the three-wheeler and ride-hailing sectors,” he said.
Dr Kyauke further urged the government to establish gas refuelling stations in regions that have yet to access this energy source and to promote its domestic use.
“They should work on expanding its use in households, as this energy is environmentally friendly,” he added.
Ride-hailing taxi driver Shaban Mponda welcomed the initiative, noting that the scarcity of gas refuelling stations has discouraged many from converting their vehicles.
“If there were more stations, no one would use petrol for business, especially those operating within Dar es Salaam. Gas is affordable; the challenge is accessibility. More stations will attract more users,” he said.
Expensive
TPDC reports that constructing a gas refuelling station costs between Sh2.1 billion and Sh2.7 billion, depending on size and location, whereas a fuel station costs Sh400 million.
Tanzania is estimated to have 230 trillion cubic feet of natural gas, with 57.5 trillion cubic feet confirmed, ranking the country 82nd globally.
This gas is extracted from the Songosongo islands in Kilwa District, Pwani Region, and Msimbati in Mtwara Region. It is used for electricity generation and to power industrial machinery.
Reports indicate that compressed natural gas (CNG) is a more affordable energy source for vehicles compared to diesel and petrol.
The price of CNG is currently Sh1,550 per kilogram, while petrol costs Sh2,820 per litre.
Additionally, gas consumption is more economical than fuel. A vehicle that covers 12 kilometres per litre of petrol can travel over 20 kilometres with a kilogram of gas.
As natural gas is domestically produced, it ensures a reliable and stable energy supply for vehicles at more predictable prices than imported fuel, which fluctuates based on global markets.
Using natural gas in vehicles helps the country save foreign currency that would otherwise be spent on importing diesel and petrol. Tanzania has discovered 57 trillion cubic metres of natural gas.
Moreover, natural gas is environmentally friendly as it emits lower levels of carbon dioxide (CO2) compared to petrol and diesel, contributing to reduced environmental pollution.
