Across Tanzania, petrol station owners are quietly struggling to find ways to increase revenue and profitability in an increasingly competitive market.
The days when petrol and diesel were enough to sustain a business are fading fast.
Unseen fuel losses and the struggle to optimize site selection and manage operating costs are forcing operators to look beyond the nozzle. The next frontier is diversification — and it’s already taking shape through LPG, CNG, car washes, EV charging points, and mini-supermarkets attached to forecourts.
According to world bank’s 2023 report , the number of Tanzanians using clean cooking solutions has been gradually increasing from 1.5 percent in 2010 to 6.9 percent in 2021.
In addition, the National Energy Policy of 2015 recommends the exploration of possibilities for fuel switching from charcoal and firewood to other forms of energy such as compressed natural gas (CNG), liquefied petroleum gas (LPG), and electricity.
In May this year, the government announced a subsidy for more than 450,000 LPG cylinders to help households shift from charcoal and firewood to cleaner energy
This plan aim to increase adoption of LPG across the country. For petrol stations, that policy opened a golden door — a new source of customers and income.
LPG: The Next Growth Engine.
LPG (liquefied petroleum gas) is no longer just a household commodity. It is becoming a high-turnover retail product that fits neatly into petrol station operations. Station owners owners can sell or exchange cylinders directly to households and small eateries.
The International Energy Agency’s Gas Market Report (Q3 2025) noted that East Africa’s gas supply outlook remains positive as regional infrastructure expands. That means steady LPG availability and more competitive prices ahead. As global attention turns to cleaner fuels, local stations can ride this wave without waiting for complex petrleum projects or international investors.
Beyond Fuel: Services That Pay.
The transformation is not limited to gas. Modern stations are evolving into mini-malls, with shops, restaurants, and car washes becoming standard features. A driver who stops for refueling may end up buying bread, or washing the car — small transactions that add up to strong monthly income.
In cities like Dodoma, Arusha, and Mbeya, several new outlets have integrated convenience stores and fast-food kiosks on-site. “If you add a shop or café, you are not only selling fuel — you are selling time and experience,” says a marketing manager for a local downstream company. “Drivers appreciate a clean restroom, food, and a smile. That builds loyalty.”
Then comes the next big thing — electric vehicle (EV) charging. Although Tanzania’s EV market is still small, the direction is clear. In July 2025, EV24 Africa reported that the government had adjusted import rules to encourage EV adoption. Public charging stations remain rare, giving early movers in the fuel retail sector a first-mover advantage. One fast charger at a high-traffic station can attract EV users — and while they wait for the battery to fill, they spend more inside the shop.
Read also: A Detailed Feasibility and Project Report on Starting a Profitable Petrol Station in Tanzania
What Lies Ahead.
Still, success depends on more than pricing. Operational efficiencies, strategic site management, and offering wide range of products are factors that can have a far greater impact on profitability than profitability alone.
The bigger picture, though, remains promising. Tanzania’s population is growing, cities are expanding, and the demand for convenience is increasing. Energy diversification — from LPG to EVs — is not just an environmental agenda. It is a business survival strategy.
As one veteran dealer in Mwanza puts it, “If your station only sells petrol, you are stuck in yesterday. Tomorrow’s winners will sell energy, food, and services — all in one place.”
The rise of LPG and ancillary services is a sign of where the country’s fuel retail business is heading: toward integration, innovation, and independence from fuel price shocks. For many station owners, the future profits will come not from the pump, but from everything around it.
