Uganda’s Ministry of Energy has announced that, beginning January 2026, all petrol sold in the country will be blended with domestically produced ethanol.
According to a Reuters report, the move is part of efforts to lower the East African country’s $2 billion annual petroleum import bill and advance its clean energy agenda.
Initially, the government will mandate a 5% ethanol blend in petrol, with plans to gradually increase the ratio to 20% based on the availability of local supply.
Ethanol, which is largely derived from molasses—a byproduct of sugar production—can help reduce carbon emissions, aligning with Uganda’s climate goals.
This new policy comes as Uganda prepares to begin commercial crude oil production next year, with plans to export via a pipeline through Tanzania to the Indian Ocean.
The country granted exclusive rights for petroleum product supply to a subsidiary of global energy trader Vitol in 2023, marking a significant shift in how Uganda manages its fuel imports.
Image Credit: Arise News
