Tanzania Petrol Station Sector: Growth, Trends, Opportunities, and Forecast

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Tanzania imports all its finished petroleum products from outside except Natural gas, which is locally produced from the Southern regions of Mtwara and Lindi. Most of the petroleum products (except Natural gas and LPG) distributed in Tanzania reach the end consumer through retail petrol stations.

The country has been registering steady petroleum product growth yearly, driven mainly by petrol, diesel, and LPG.

However, the rise in penetration of electric vehicles and Compressed natural gas (CNG) in Tanzania to control pollution and reduce high transportation costs for the citizens can slowly displace the demand for petrol stations.

However, the lack of proper infrastructures for compressed natural gas(CNG) and electric vehicles in Tanzania and East Africa are restraining factors of the petrol station market growth in the region.
This is evident that demand for conventional fuel such as petrol, diesel, LPG, and oils will remain for decades. And non-fuel products will become increasingly relevant in supermarkets, garages, car wash, food services, and other ancillary offers.

In general, market dynamics appear to represent growth opportunities for both international and local investors.

The object of this study report is to provide a comprehensive analysis of the general regulatory framework in the petroleum products business, market structure; petroleum products regulatory framework, importation/supply, storage and distribution through retail outlets or petrol stations, number of players in the market, petroleum products and petrol stations growth trends, and pricing mechanism.

It also covers estimating investment in petrol Stations with crucial equipment and devices, applicable codes and standards, and required permits for constructing petrol stations.

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Hussein Boffu runs a consultancy provides business planning, financial forecasts, market research reports, expert analysis and consulting for entrepreneurs and business owners. Reach out to him via email at hussein.boffu@tanzaniapetroleum.com or by calling, texting, or WhatsApp at +255(0)655376543.