EWURA set to begin issuing new CNG price caps for vehicles from next

06Aug 2022
Geoffrey Nangai
The Guardian
EWURA set to begin issuing new CNG price caps for vehicles from next

THE Energy and Water Utilities Regulatory Authority (EWURA) has announced plans to set cap prices to regulate Compressed Natural Gas (CNG) prices for vehicles with effect from next month as part of its efforts to protect consumers the EWURA Director General EngModetusLumato has revealed.

This follows escalation of fuel prices to record high levels in the country’s history prompting options for motorists to weigh options of switching to CNG because of its cost effectiveness

Fuel prices in Tanzania have continued to escalate despite Government’s 100bn/- subsidy and according to new fuel prices that were effective on August 3, 2022, the retail price for petrol rose by 190/-in Dar es Salaam to 3,410/- per liter while the prices of diesel also rose by 179/- to 3,322/- per liter.

Speaking during the Tanzania Energy Conference held in Dar es Salaam on Thursday, EngLumato said the authority move to regulate CNG prices follows an increased number of consumers.

“The CNG caps had never been issued before because there were very few CNG consumers so it was not necessary to set up the price. Since the oil prices have risen to record high levels, many people are now opting for alternative fuel options including CNG for vehicles,” EngLumato said.

He said the energy regulator has already met with all the energy sector stakeholders and is now finalizing plans to issue CNG cap prices with effect from September.

He noted the country’s move to regulate CNG prices will give potential investors some confidence since the regulations protect both investor and customer interests.

“We expect to see more CNG projects coming up after issuing these regulations and instruments,” he added.

EngLumato noted that EWURA in partnership with the Tanzania Petroleum Development Company (TPDC) is now embarking on setting up CNG filling stations for vehicles across the country.

“We are planning to increase the number of CNG filling stations and TPDC has already offered permits to some private companies to set up CNG filling stations. Some companies have already approached EWURA expressing interest to construct CNG filling stations,” he added.

He said the country at the moment has only three CNG filling stations, two in Dar es Salaam and one in Mtwara adding that the number of CNG vehicles is increasing tremendously in recent months.

He said Ewura would also set up various new conversion workshops to facilitate the switch from use of fuel to CNG adding that the Government will be solely responsible for those workshops.

“These workshops need monitoring. We will not allow anyone to establish such workshops on the streets because they need special specifications. We will be working with the Contractors Registration Board (CRB) which has a mandate to construct these workshops,” he added.

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