Will Electric Vehicles, CNG Displaces the Demand For Petrol Station In Tanzania

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Increasing the price of transportation fuels such as petrol and diesel primarily drives the adoption of CNG and electric vehicles in Tanzania.

With substantial proven natural gas reserves of at least 57 trillion cubic feet, the Tanzanian government has been introducing various initiatives to promote the adoption of compressed natural gas(CNG) vehicles.

Furthermore, Tanzania has the most significant number of electric vehicles than all-electric vehicles in East Africa combined.

The popular belief is that the rise of electric vehicles and compressed natural gas (CNG) vehicles will limit the growth of petrol stations.

The Future of Petrol Station and Fuel Retail Sector.

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.

Hussein Boffu runs a consultancy helping elite entrepreneurs reach their goals through actionable business planning. Contact him via email at hussein.boffu@tanzanapetroleum.com or by calling, texting, or WhatsApp at +255(0)655376543.