September 2017
« Jun    
Share |

Use natural gas instead of oil, govt told

TANZANIA would have lessened its use of public funds and foreign currency had the government converted its vehicles to use the Compressed Natural Gas (CNG) found abundantly in the country instead of oil.

A research conducted by two lecturers from the Tanzania Institute of Transport (NIT) and presented  before some institute’s students and lecturers, shows that the government was unnecessarily spending too much on fossil oil.

The research carried out between last and this year is entitled: ‘The Basis to Exploit Compressed Natural Gas in Transport: Towards Lessening Public Expenditures in Tanzania’. The researchers, Gilliard Ngewe and Batholomew Marcel, both lecturers of Logistics and Transport Management, said that until August this year, government vehicles in Dar es Salaam alone had consumed diesel worth over 12.5bn/-.

In the report, they stated that assuming diesel prices remain the same for the next six years, government vehicles in Dar es Salaam alone will have consumed diesel worth 62,794,586,831.95/- by the end of that time.

The report also reveals that if the government vehicles in Dar es Salaam are converted to Compressed Natural Vehicle (CNV), the fuel cost will go down by 40 to 50 per cent.

“Therefore at the lowest price of natural gas, assuming that prices remain unchanged for the next six years, the government will spend some 25.1bn/- and thus save some 37.6bn/- in six years less the cost of converting vehicles,” reads the report.

The report also quotes another researcher, Mwamnyange (2010), who suggested that using natural gas over other traditional fuels like charcoal, petrol, diesel, liquefied petroleum gas and heavy fuel oil, will save the government more than USD 36.62m (about 70bn/-) in oil products imported every year

Leave a Reply




You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>