By Omenihu Alfred fibmn
The government of Uganda is working round the clock to implement ethanol-blended petrol from January 2026, to cut fuel imports and promote clean energy.
Beginning January 2026, Uganda will require all petrol sold in the country to be blended with locally produced ethanol, the Ministry of Energy announced this last week. The new policy is aimed at reducing the country’s hefty petroleum import bill—currently estimated at around $2 billion annually—and promoting cleaner energy alternatives.
Under the initial phase of the programme, fuel distributors must blend at least 5% ethanol into their petrol supplies. The ministry stated that this ratio would gradually increase to 20%, depending on the availability of ethanol. The biofuel is primarily derived from molasses, a byproduct of sugar production, making it a renewable and locally accessible resource.
In 2023, Uganda granted exclusive rights for the import and supply of petroleum products to a subsidiary of global energy trader Vitol. However, with the planned ethanol blending programme, the country hopes to ease its reliance on imported fuel while fostering local industry.
Uganda, a landlocked nation, is also preparing to begin commercial crude oil production next year, with plans to export via a pipeline to Tanzania’s Indian Ocean coast. The blending policy is seen as a complementary step in reshaping Uganda’s energy landscape for both economic and environmental gains
