Governments across Africa are aggressively promoting the use of compressed natural gas (CNG) as a cheaper and more environmentally friendly alternative to diesel and petrol.
The number of CNG vehicles is rapidly increasing across the continent.
For example, in Tanzania, the number of CNG vehicles has risen from 3,100 in 2023 to 15,000 in 2025. The government also aims for the majority of vehicles to be CNG-fueled by 2050.
Although the number of CNG filling stations has increased from five in 2024 to nine in 2025, this is still not enough to meet the projected demand from the growing number of CNG vehicles across the country.
This presents substantial opportunities for petrol stations to tap into the growing market and maximize revenue by installing CNG units at existing stations.
CNG will not completely replace diesel and petrol, as these fuels will still be needed over the next decade.
However, for petrol station operators to maximize profitability and participate in the greener economy, they must adapt to the changes brought about by the increasing number of CNG vehicles as the global sustainable mobility transition gains traction.
With fluctuating petroleum product prices, organizations and drivers are now leaning towards alternative fuels, including the adoption of CNG.
To cope with thin margins, some petrol stations in Tanzania have already diversified into service stations with restaurants, mini-supermarkets, shops, ATMs, and other services to expand their revenue streams.
To embrace the future, fuel retailers should form partnerships with CNG suppliers, compressor manufacturers, and dispenser providers.
CNG presents an opportunity for fuel retailers to integrate sustainability into their business strategies and operations, gain a competitive edge, maximize profit, and support Tanzania in its journey towards sustainable transportation.
