By Uganda has begun blending petrol with ethanol under a new government programme aimed at cutting fuel costs, supporting local farmers, and reducing dependence on imported fossil fuels.
The Minister for Energy and Mineral Development, Dr. Ruth Nankabirwa Ssentamu, made the announcement at the Uganda Media Centre in Kampala on Tuesday, marking what she called a “significant milestone” in the country’s shift toward cleaner, more sustainable energy.
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The new fuel, known as E5, is a mixture of 95% petrol and 5% ethanol. The blending is being done in accordance with the Biofuels Act 2020 and the Biofuels (Licensing) Regulations 2022. The programme will undergo a six-month incubation period ending December 31, 2025, during which full operational readiness is expected to be achieved.
Dr. Nankabirwa said the ethanol will be sourced from local producers, including Kakira Sugar, Hoima Sugar, G.M. Sugar, Bukona Agro-Processors and others, who currently produce up to 78.5 million litres annually. An additional 110 million litres of ethanol production is expected in the near future.
Four fuel blending facilities have been licensed to operate at key border entry points: Modern Energy Ltd in Busia, Bukona Agro Processors Ltd in Malaba, Afro-Kai Ltd in Mutukula, and Lake Victoria Logistics in Kawuku, Entebbe. Combined, these facilities will process approximately 110 million litres of petrol annually.
The government expects that using locally produced ethanol will not only reduce fuel prices but also create jobs, boost agro-industrialisation, and reduce emissions from the transport sector.
Denatured ethanol has been exempted from taxes to make it more affordable for both blending and household use, especially for cooking. Dr. Nankabirwa also said standards for blended fuel have been finalized in partnership with the Uganda National Bureau of Standards (UNBS) to ensure quality and prevent fuel adulteration.
The minister encouraged oil marketing companies to prepare for the full rollout of the blending programme, which is expected to be officially launched in August.
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“This is a turning point for Uganda’s energy future,” said Dr. Nankabirwa. “We are reducing emissions, cutting fuel costs, and empowering our farmers and processors with new market opportunities.”
The government believes that with time, the biofuels programme could open doors to export opportunities, including in the aviation sector, where global demand for ethanol-blended fuel is rising.
