In recent years, many African countries have faced fluctuations in fuel prices and environmental pressures. Compressed natural gas (CNG), as a low-cost and low emission alternative energy source, has become an important choice for the transformation of the transportation sector. The CNG retrofit kit market has also shown a differentiated price trend.
In Kenya, East Africa, the CNG modification craze is gradually heating up from 2023. According to local market data, the price of the basic Venturi CNG retrofit kit is concentrated between 80000 and 150000 Kenyan shillings (approximately 500-950 US dollars), suitable for economy sedans such as Toyota Corolla and Nissan Sunshine; The high-end sequential injection kit suitable for SUVs and commercial vehicles, with more precise gas control technology, has climbed to a price of 200000 to 350000 Kenyan shillings (approximately 1270-2220 US dollars). It is worth noting that the Kenyan government has implemented a 10% tariff reduction on imported CNG kits in order to lower the modification threshold, which is significantly lower than the previous 25% tax rate, directly driving down the average kit price by 8% -12%.
As an industrial powerhouse in Africa, South Africa has a more mature CNG modification market and a more segmented pricing system. According to the Johannesburg Automotive Refitting Association, in the first half of 2024, the price of a single fuel CNG retrofit kit (using only CNG) for household cars will be 12000 to 20000 South African rand (approximately $480-800), while a dual fuel kit (switchable gasoline/CNG) will cost 18000 to 28000 South African rand (approximately $720-1120). The price difference mainly comes from kit brands - local brands such as Gascon have prices about 30% lower than imported brands (such as Lovato in Italy), but imported brands occupy 60% of the high-end market share due to their complete quality certification.
From a regional trend perspective, Algeria in North Africa has become one of the African countries with the lowest cost of CNG retrofitting due to its abundant natural gas resources. The local state-owned energy enterprise Sonatrach has launched the "Natural Gas Transportation Transformation Plan", providing residents with a modification subsidy of 50000 dinars (about 280 US dollars) per set. Combined with locally produced low-cost kits, the actual modification cost borne by the public is only 80000 to 120000 dinars (about 450 to 670 US dollars). According to data from the Algerian transportation department, in the first quarter of 2024, the number of CNG modified vehicles in the country increased by 140% year-on-year, and the surge in demand for kits also drove local producers to expand production capacity. It is expected that kit prices will further decrease by 5% -8% in the second half of the year.
Overall, the price of CNG retrofit kits in Africa is influenced by three factors: resource endowment, policy subsidies, and brand types, presenting a pattern of "low in North Africa, stable in South Africa, and low in East Africa". As multiple countries continue to promote energy transformation, the future kit prices are expected to further develop towards a more affordable direction, injecting momentum into the green upgrading of Africa's transportation sector.
