Government to reduce taxes on natural gas-powered gas vehicles.

Government to reduce taxes on natural gas-powered gas vehicles.

The government, through the Ministry of Energy, has announced a reduction in taxes for vehicles entering the country that run on natural gas. Deputy Minister of Energy, Hon. Judith S. Kapinga, stated that the government has already initiated various programs for the use of compressed natural gas (CNG) in vehicles.

So far, in collaboration with the private sector, they have opened 5 refueling stations, with plans to open 3 more by December 2024. Deputy Minister Kapinga further explained that under the leadership of the Sixth Phase Government led by H.E. Dr. Samia Suluhu Hassan, a total of 16 stations (2 main stations and 14 smaller stations) are expected to be operational by December 2025.

Regarding additional efforts to enhance natural gas availability, Minister Kapinga mentioned that in 2022, the Tanzania Petroleum Development Corporation (TPDC) installed 3 compressor sets capable of increasing the pressure by 20 million cubic feet.

Currently, TPDC is in the process of selecting a contractor to install equipment for further gas compression (20 million cubic feet) at the Songosongo production block, with completion expected by March 2026.

These details provided by Minister Kapinga were in response to a question posed in parliament by Kawe Constituency Member of Parliament, Hon. Josephat Gwajima. He sought information on when the government would implement a strategy to use natural gas for vehicle propulsion, aiming to save foreign exchange spent on importing oil.