Tanzania has removed Value Added Tax (VAT) on all Compressed Natural Gas (CNG) stations and related vehicle installation equipment, a move aimed at expanding the adoption of natural gas in the transport sector and stimulating investment in clean energy infrastructure.
Speaking at the launch of Puma Energy’s new CNG station on Bagamoyo Road on September 24, 2025, Secretary-General of the Ministry of Energy, Eng. Felchesmi Mramba, said the policy is designed to increase accessibility and affordability of natural gas for vehicles.
“By eliminating VAT, the Government is making natural gas a cost-effective and environmentally friendly alternative to conventional fuels,” Eng. Mramba said, emphasizing that broader adoption could also reduce fuel import bills.
Dar es Salaam currently hosts 11 CNG refilling stations, with plans to expand to 18 by year-end, a move expected to boost private sector participation and create opportunities for mobile refueling services.
The Tanzania Petroleum Development Corporation (TPDC) has deployed six mobile CNG refilling vehicles to enhance reach in urban and peri-urban areas.
Eng. Mramba praised Puma Energy for supporting the Government’s strategic energy transition and encouraged additional investors to expand CNG infrastructure nationwide.
Puma Energy CEO Fatma Abdallah said the company’s new station aligns with the Government’s push for cleaner, safer, and more sustainable energy solutions for transport, highlighting opportunities for private-public collaboration in the sector.
Analysts say the VAT removal could lower operational costs for vehicle owners, increase consumer adoption of CNG, and signal Tanzania’s commitment to modernizing its energy mix while fostering private sector investment.
