The Government has finalized regulations to standardize Compressed Natural Gas (CNG) business across the country as part of its efforts to protect the interests of potential investors and consumers, The Business Wiz has learnt.
This follows a sharp increase in fuel prices locally that has triggered motor vehicle owners to switch to CNG as it’s a cheaper option.
According to the Energy and Water Utilities Regulatory Authority (EWURA) Director General Eng Modetus Lumato, in line with the regulations, the energy regulator will also issue monthly CNG cap prices with effect from September next month
Eng Lumato said the authority has move to regulate CNG prices following an increased number of consumers opting for CNG gas for their vehicles
“Before, there were very few CNG consumers so it was not necessary to set up the price caps. Since the oil prices have risen to record high levels, many people are now opting for alternative fuel options including CNG for vehicles,” Eng Lumato said.
He said the energy regulator has already engaged 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.
Eng. Lumato noted that EWURA in partnership with the Tanzania Petroleum Development Company (TPDC) is now embarking on setting up more CNG filling stations for vehicles across the country.
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