Govt backs private sector in clean energy push

DAR ES SALAAM: THE government has reiterated its commitment to supporting the private sector in expanding access to cleaner energy solutions, particularly Compressed Natural Gas (CNG), as part of the country’s transition towards a modern and low-carbon energy future.

Speaking on Wednesday during the official launch of Puma Energy Tanzania’s first retail CNG station at Tangi Bovu in Dar es Salaam, Permanent Secretary in the Ministry of Energy, Felchesmi Mramba, said several incentives have been rolled out to attract investment in the CNG sector.

“These include the removal of Value Added Tax (VAT) on the establishment of CNG refueling stations,” he noted, stressing that the government is determined to create a conducive environment for investors to drive the adoption of clean energy solutions.

Mramba also said that taxes have been waived on vehicle conversion kits used to switch from petrol or diesel to CNG systems and import duties reduced for vehicles that are factory-fitted with CNG systems.

“The government is committed to improving the quality of life for Tanzanians by lowering the cost of energy through the use of locally produced natural gas,” Eng Mramba said.

He commended Puma Energy for being among the pioneers in investing in CNG infrastructure, noting that such initiatives directly support the government’s agenda to diversify energy sources and promote access to affordable, sustainable fuels.

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“The success of this project strengthens Tanzania’s capacity to adopt cleaner, less carbon-intensive solutions, which is in line with global energy transition trends,” he added.

He further urged other fuel companies to follow Puma Energy’s example by investing in CNG infrastructure and services, helping to expand availability and access across the country.

He also encouraged citizens to switch their vehicles to CNG, highlighting its affordability, safety and environmental benefits.

“I want to assure Tanzanians that CNG is safe, efficient and significantly cheaper than petrol or diesel by 40 to 50 per cent. Using CNG will help households cut down on fuel costs while reducing the risk of fire and environmental impact,” he noted.

Puma Energy Tanzania Managing Director, Ms Fatma Abdallah said the launch of the new CNG station marks a new chapter for the company and for Tanzania’s journey towards cleaner energy.

“We are proud to introduce world-class infrastructure that offers reliable service while contributing to reduced carbon emissions.

This station reflects our long-term commitment to sustainability and we are already preparing to launch more CNG stations before the end of the year,” Ms Abdallah said.

She described the facility as a hybrid energy hub, combining multiple services including CNG, petrol, diesel, LPG, lubricants and a convenience store all in one location.

“This is a one-stop destination designed for today’s energy needs. It reflects our ambition to offer modern, trusted solutions that reduce carbon emissions while enhancing customer convenience,” she added.

Puma Energy Tanzania’s Head of Legal and Corporate Affairs, Mr Emmanuel Bakilana stressed the company’s commitment to quality, safety and reliability.

“This facility is a testament to our investment in advanced infrastructure. Our customers can continue to rely on us for consistent, safe and high-quality energy solutions,” he said.

Acting High Commissioner of Canada to Tanzania, Ms Carol Mundle explained the importance of international partnerships in supporting access to modern technologies and technical expertise, which are critical in driving forward clean energy solutions.

The new CNG station is built with an installed capacity of 1 million standard cubic feet per day (1 MMSCFD), enabling it to reliably serve a wide range of vehicles, including light-duty vehicles, heavy-duty trucks and three-wheelers.