TANZANIA VEHICLES POWERED BY NATURAL GAS.

Consumers in Tanzania could soon benefit from a switch to compressed natural gas (CNG) as the basic fuel for the country's motor vehicles. The Government is sponsoring a project to make natural gas available for corporate fleets and the fleet of minibuses (daladalas) that operate in the capital, Dar es Salaam. The first vehicles are already on the road and belong to Tanzania Breweries and Kioo Glass, according to a recent story published by regionally published The East African (Nairobi).

General distribution is not slated to be available before the end of 2005 or early 2006. The general public will be able to participate in the program as gas stations are included in the distribution system. The cost for converting a private automobile to use both gasoline and CNG is about US$1,000 for a small car and US$2,000 for a mid-size.

Indirect benefits to consumers from the switch to CNG are less pressure on Tanzania's inflation, which has been trending downward since 2001 from the 5 percent range to an estimated 4 percent at the end of 2005. Lower fuel costs also translate into lower prices for delivered items, though such reductions will not be immediately felt.