In a world increasingly focused on climate change and rising petroleum price volatility, governments and the media are understandably keen to publicize plans for a transition towards cost-effective and lower-emission mobility.
For example, Tanzania aims for the majority of vehicles to be CNG-fueled by 2050. There is also a broader regulatory movement towards alternative mobility. EWURA published e-mobility guidelines for charging stations and battery swapping in April 2026, while Tanzania is reportedly leading East Africa in EV adoption, with more than 5,000 electric vehicles on the road.
This means compressed natural gas (CNG) and electric vehicles (EVs) are emerging as two of the most viable and cost-effective alternatives for improving energy efficiency and reducing greenhouse gas (GHG) emissions in the transportation sector.
But how will this transition towards alternative mobility directly affect the evolution of Tanzania’s petrol station market over the next decade? And how can Tanzania’s petrol stations adapt and remain commercially viable as the market changes?
The Current Situation of Tanzania’s Petrol Station Market.
The use of CNG in vehicles began gaining traction in 2018, marking steady progress in the expansion of alternative fuels as part of Tanzania’s broader energy diversification agenda.
Despite this growth, there are still fewer than 11 CNG fuel stations and fewer than 15 public EV charging stations in the entire country, with most concentrated in Dar es Salaam.
At the same time, the number of petrol stations has continued to increase over the last eight years.
According to the Energy and Water Utilities Regulatory Authority (EWURA), the number of petrol stations in Tanzania increased from 1,460 in 2018 to 2,787 in December 2026.
This indicates that the petrol station sector is not in decline, despite the rise of CNG and electric vehicles. However, the growing number of petrol stations is also creating more intense competition.
In Tanzania’s petrol station market, where EWURA regulates prices and controls margins, petrol station operators need to shift their focus from simply serving vehicles to serving customers and developing additional business models and revenue streams.
The Tanzania Petrol Station Market in 2050.
As more car owners adopt EVs and CNG vehicles, alongside the broader regulatory movement towards alternative mobility, the traditional petrol station model is likely to gradually change.
For example, the government aims for the majority of vehicles to be CNG-fueled by 2050.For reference, the total number of passenger cars of all fuel types is currently estimated at approximately 650,000. Considering Tanzania’s expected population and economic growth, a 15% increase in the number of cars by 2050 would probably be a conservative assumption. Based on this assumption, the number of passenger cars would reach approximately 747,500.
If at least 70% of these vehicles were CNG-fueled, this would mean approximately 523,250 CNG vehicles by 2050.
This suggests that Tanzania’s petrol station market could face significant challenges over the coming decades as the adoption of CNG and EVs increases.
However, this does not necessarily mean that petrol stations will disappear. Instead, the businesses that adapt to changing customer needs, diversify their revenue sources and become more customer-centric are likely to be better positioned to remain competitive.
The Transformation Needed to Survive
To remain competitive, petrol station operators will need to consider several forms of transformation, depending on their specific location, customer base and market potential.
- Diversification of Energy Supply
Petrol stations can expand their range of energy products and gradually evolve from traditional fuel stations into broader energy hubs.
This could include adding EV charging stations, solar-powered charging, CNG refuelling points, LPG, lubricants and other energy-related products.
- Create Strategic Partnerships
As customer behaviour evolves, partnerships with external businesses and service providers will become increasingly important for generating additional revenue.
These partnerships could include EV charging providers, restaurants, cafés, ATMs, supermarkets, car washes, vehicle maintenance services and mobile payment providers.
The objective is to make the petrol station more than a place where customers simply stop to buy fuel.
- Add Commercial Customers.
Instead of relying exclusively on individual motorists, petrol stations can target commercial customers such as transport companies, schools, hospitals and banks.
Commercial customers can provide petrol stations with significant and more predictable sales volumes.
However, credit sales can also create cash-flow challenges if customers delay payments for 30, 60 or 90 days. Therefore, commercial customer strategies need to be supported by effective credit management and clear payment terms.
- Choose the Right Location.
The success of a petrol station depends heavily on selecting the right location.
Before developing a petrol station, investors should conduct a professional location and market assessment to gain a clear understanding of the site’s visibility, trading area, demand potential, competitors and customer profile.
A better understanding of local demand, competitive intensity, customer characteristics, realistic sales volumes and expected return on investment can help investors make better investment decisions and improve the long-term performance of their stations.
The Real Question for Tanzania’s Petrol Stations
The real question is not whether CNG vehicles and electric vehicles will eventually replace traditional petrol and diesel vehicles.
The more important question is how Tanzania’s petrol stations will adapt to the changes taking place in the mobility and energy markets.
The opportunity to develop petrol stations in Tanzania remains real. The challenge is becoming more about where to build, how to operate and how to evolve the business model as customer behaviour and vehicle technology change.
The answer lies in four areas:
- Optimising location selection
- Diversifying energy and revenue sources
- Building strategic partnerships
- Improving operational efficiency and customer experience
The petrol station of the future may therefore look very different from the petrol station of today. Rather than simply being a place to refuel a vehicle, it could become a broader commercial and energy hub serving multiple forms of mobility and a wider range of customer needs.
