LPG

Tanzania's LPG imports surged 38% in FY 2023/24 to reach 403,638 metric tonnes, making LPG the fastest-growing segment of the downstream petroleum industry.^[1]

Tanzania is a net importer of LPG, with all volumes procured through international competitive bidding under the Bulk Procurement System and landed primarily through the ports of Dar es Salaam and Tanga.

Domestic demand is being pushed upward by the National Clean Cooking Energy Strategy, which targets 80% of the population using clean cooking energy from natural gas, LPG, and electricity by 2034.^[1]

LPG Consumption and Import Dependency

LPG imports reached 403,638 metric tonnes in FY 2023/24, a 38% increase over the preceding fiscal year.^[1]

This expansion took place within a broader petroleum importation volume of 9.22 billion liters for the same financial year.^[2]

Tanzania has no domestic LPG production at scale, so consumption growth translates directly into higher import volumes procured through the Bulk Procurement System.

The growth trajectory is anchored in a large addressable market: LPG currently accounts for only 9.2% of household cooking energy, leaving substantial room for substitution away from firewood and charcoal.^[3]

Import Logistics and Distribution Network

LPG is landed by ship primarily at the ports of Dar es Salaam and Tanga, with additional petroleum handling at Mtwara.

In 2024, Tanzania operated six LPG receiving facilities located in Dar es Salaam and Tanga, feeding into a national petroleum storage base of 1,637,222 cubic meters across all products.

From coastal terminals, LPG is transported by road tanker trucks to regional depots, retail stations, industrial facilities, power generation plants, and airports across the country.

Road tankers also serve neighbouring markets, including Uganda, Rwanda, Burundi, the DRC, Malawi, and Zambia, positioning Tanzania as a regional LPG distribution corridor.

Storage Capacity and the Tanga Expansion

Total LPG storage capacity stood at 17,700 metric tonnes in FY 2023/24, a figure that has become tight relative to the 38% annual growth in import volumes.^[1]

In 2025, construction began on a new USD 50 million LPG storage facility in Tanga City.

The Tanga investment expands the northern corridor's handling capability and complements the existing receiving infrastructure clustered in Dar es Salaam.

Storage remains a bottleneck in the value chain and a direct constraint on the pace at which clean cooking targets can be met.

LPG in the National Cooking Energy Mix

Over 80% of Tanzania's population still relies on traditional cooking technologies and fuels.^[3]

Firewood accounts for 58.6% of cooking energy, charcoal for 27.1%, kerosene for 1.2%, LPG for 9.2%, and electricity for 2.5%.^[3]

The low current share of LPG indicates a large addressable market as households transition away from biomass fuels.

The Government's stated ambition is for 80% of the population to use clean energy for cooking from natural gas, LPG, and electricity by 2034.^[1]

Policy Framework

Tanzania's LPG sector is regulated by the Energy and Water Utilities Regulatory Authority (EWURA), which oversees licensing, quality standards, storage, pipelines, distribution, and retail operations.

National Clean Cooking Strategy

The National Clean Cooking Strategy, launched in April 2024, complements the Renewable Energy Strategy and promotes clean cooking technologies, fuels, and solutions.^[1]

The Strategy targets 80% of the population using clean cooking energy from natural gas, LPG, and electricity by 2034.^[1]

Envisaged measures include tariff incentives, tax incentives for cooking equipment, and subsidies on the prices of clean cooking technologies.

Rural Energy Access

The Rural Energy Agency (REA) implements Government programs to promote sustainable energy solutions in rural areas, including electricity, LPG, and other clean energy sources for underserved communities.

This extends the LPG value chain into markets historically dominated by firewood and charcoal.

Investment Opportunities

The downstream LPG value chain offers several entry points for investors aligned with Tanzania's clean cooking agenda.

Production and marketing of LPG is an explicit priority, including the manufacturing of cylinders, valves, and regulators.^[4]

Installation of LPG filling plants, retail distribution networks, and the supply of clean cooking stoves are further identified investment areas.^[4]

Storage infrastructure remains under-capacity relative to import growth, as demonstrated by the USD 50 million Tanga City storage facility that began construction in 2025.

Adjacent downstream opportunities include the development of mini-LNG projects to transport gas via special trucks to regions not reached by pipelines, the establishment of CNG filling stations for vehicles, and the development of small petrol stations in rural areas.^[4]

Last Update: July 2026