Starting January next year, Uganda will require all fuel distributors to blend locally produced ethanol into the petrol sold across the country.
- Uganda will require fuel dealers to blend ethanol into petrol starting next year.
- This aims to reduce the country’s $2 billion annual petroleum import bill and promote cleaner energy.
- The blending process will begin with a 5% ethanol mix, with plans to increase to 20%.
Starting January next year, Uganda will require all fuel distributors to blend locally produced ethanol into the petrol sold across the country.
The development was announced by Energy Minister Ruth Nankabirwa, who revealed that the blending process will be spearheaded by the Uganda National Oil Company (UNOC).
The move is aimed at reducing the country’s $2 billion annual petroleum import bill and promoting cleaner energy alternatives, according to Reuters.
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“This initiative is not just about improving fuel quality; it’s a significant step towards environmental protection and reducing the overall cost of fuel for Ugandans,” said Nankabirwa.
Under the new policy, fuel dealers must initially blend 5% ethanol into petrol, with plans to gradually increase the proportion to 20%, depending on local supply capacity.
Fuel blending involves combining conventional fossil fuels, such as petrol or diesel, with renewable additives like ethanol or biodiesel.
Cleaner energy
Ethanol, a biofuel primarily derived from molasses, a byproduct of sugar production, is one of the most commonly used blending agents. It is considered a cleaner alternative to traditional fossil fuels and plays a key role in supporting the government’s emissions-reduction goals.
The policy aligns with Uganda’s broader energy strategy. In 2023, the country awarded exclusive petroleum supply rights to a subsidiary of global energy giant Vitol, centralizing fuel imports.
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Although Uganda is currently reliant on imported refined petroleum products, the landlocked East African nation is preparing to begin commercial crude oil production next year, with plans to export via a pipeline to the Indian Ocean port in Tanzania.
In a major step toward developing its energy sector, a UAE-backed firm secured a contract in March to build Uganda’s first crude oil refinery, a 60,000-barrel-per-day (BPD) facility.
According to a statement from President Yoweri Museveni’s office, UAE-based Alpha MBM Investments will hold a 60% stake in the refinery, while Uganda’s state-owned National Oil Company will retain the remaining 40%.
