Mwinyi craves for low gas prices

ZANZIBAR: ZANZIBAR President Hussein Mwinyi has challenged companies to craft strategies that would lead to reduction of prices of cooking gas in efforts to make it affordable to many Tanzanians and support clean energy initiative.

Dr Mwinyi argued that lowering prices would encourage more citizens to switch to gas.

Dr Mwinyi made the call yesterday when he launched the first-ever Liquefied Petroleum Gas (LPG) terminal at Mangapwani in Zanzibar.

The Oryx Gas Zanzibar has teamed up with Zanzibar- based TP Company Limited, a subsidiary of the Vigor Turky’s Group of Companies (Vigor Group), to build the strategic LPG terminal.

The new terminal that will be receiving and storing the LPG marks a significant milestone in ensuring a better and more affordable supply of the cooking gas to meet the growing demand in the Isles and support the Tanzania’s Clean Cooking Programme.

“We will from now be receiving huge vessels for delivering LPG which will be stored in two large tanks with 130 tonnes capacity in this terminal. I call upon other companies also to construct their infrastructures at this area,” President Dr Mwinyi urged.

Dr Mwinyi argued that the establishment of the terminal will serve as a catalyst for motivating the use of clean energy, hence attaining President Samia Suluhu Hassan’s target of enabling 80 per cent of Tanzanians to use clean cooking energy by 2032.

“The opening of the Mangapwani LPG Terminal reflects Oryx Energies’ commitment to investing in critical infrastructure that supports the safe and widespread use of LPG in Tanzania. It further meets government request to ensure a sustainable supply of LPG everywhere in the country,” Oryx Gas Tanzania Limited Managing Director, Mr Benoît Araman commented.

He thanked President Mwinyi and his government for putting in place conducive environment for investment. He vowed that the company will also support more the clean cooking programme implementation in the Isles.

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General Manager of Oryx Gas Zanzibar Limited, Ms Shuwekha Omar Khamis, stated: “We are proud to inaugurate this state-of-the-art LPG terminal which strengthens LPG supply and distribution to the archipelago. We are determined to continue playing a key role in this development, having long laid the groundwork for expanding LPG distribution in Zanzibar.”

Vigor Company Chairman, Mr Toufiq Salim Turky, said the company is planning to lower prices of the LPG in the Isles by 20 per cent from July 1 this year.

“This terminal is 100 per cent owned by Vigor, but the Oryx will operate it considering its experience in this sector,” he stated.

On his part, Director General of the Zanzibar Utilities Regulatory Authority (ZURA), Mr Omar Ali Yussuf said the government’s decision to earmark the Mangapwani Port for receiving petroleum products was timely.

“Before this port we were using unsafe means to offload petroleum products, but following directive by President Mwinyi we now have this port for vessels carrying such products,” he pointed out.

He added that through the government’s plans and policies on Blue Economy the authority will ensure that Mangapwani Port becomes a hub for transporting LPG and fuel in the East African region.

The Tanzanian LPG market has seen an increase in imports of nearly 13-fold in the last decade, from 20,000 metric tonnes in 2010 to 293,000 metric tonnes in 2023.