Dar es Salaam. The government has called on the private sector to step up investment in compressed natural gas (CNG) infrastructure as part of efforts to lower vehicle operating costs and expand access to affordable energy across major regions.
Deputy Minister for Energy, Ms Salome Makamba, said the government plans to facilitate investments in 15 large CNG refuelling stations along all major highways in Dar es Salaam by June 2026 to support motorists and public transport operators.
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 said the government has already embarked on a plan to construct large CNG stations in Morogoro, Dodoma, Arusha, Kilimanjaro and Tanga, which will serve residents of those regions as well as neighbouring areas.
“The aim is to ensure that affordable and reliable energy reaches more citizens, while at the same time reducing the cost of running vehicles,” she said.
More than Sh12 billion has been invested in the Mlimani City CNG station, which has the capacity to serve up to 800 small vehicles and three-wheelers per day, as well as 15 heavy trucks that transport gas to smaller stations.
The facility is operated by GASCO, a subsidiary of the Tanzania Petroleum Development Corporation (TPDC).
Ms Makamba said the administration under President Samia Suluhu Hassan is committed to ensuring that the country’s natural resources deliver tangible benefits to citizens.
She noted that the use of CNG has significantly reduced transport costs, with one kilogramme of gas retailing at Sh1,500.
A 17-kilogramme cylinder can enable a vehicle to travel up to 50 kilometres, making gas considerably cheaper than conventional fuel.
“Given the large number of commercial vehicles and three-wheelers in Dar es Salaam, this investment presents an opportunity for operators to cut operating costs and increase their income,” she said.
The deputy minister urged private investors to accelerate investment in natural gas infrastructure, saying demand for affordable energy is rising rapidly.
She said recent improvements in the investment climate, including the public-private partnership (PPP) framework and the One Stop Centre, have made it easier for investors to participate in the sector.
She also said the government continues to prioritise youth empowerment, noting that the oil and gas sector directly benefits young people involved in transport businesses, particularly those operating motorcycles and three-wheelers, due to lower operating expenses.
TPDC managing director Mr Mussa Makame said the Mlimani CNG station has a total 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 where they spent up to three hours refuelling. Now it takes about four minutes,” he said.
