Government is tightening oversight of the biofuel industry, requiring businesses involved in producing, storing, transporting, and blending biofuels to meet licensing, technical and environmental standards as the country expands the use of ethanol in petrol.
The rules were among the issues discussed at the sixth Renewable Energy Conference (REC) and Expo 2026 in Kampala, where participants examined how regulation and enforcement can support Uganda’s transition to biofuels.
The industry is governed by the Biofuels Act, 2020, and the Biofuels (Licensing) Regulations, 2022, which set requirements for businesses operating along the biofuel supply chain.
Ministry of Energy licensing officer Hatim Muyanja said during the Expo that the licensing framework is intended to ensure that operators meet the required standards before conducting business.
He said the transition is also guided by the Renewable Energy Policy of 2007, the Energy Policy for Uganda of 2023 and National Development Plans III and IV, which support sustainable energy, local agro-industrial development and reduced reliance on imports.
The Energy Ministry’s Biofuels Licensing Authority oversees licensing and checks whether operators meet technical and environmental requirements, including the ability to trace the agricultural materials used to produce biofuels.
Uganda began blending petrol with ethanol at E1 in November 2025 and started moving towards E3 on September 21 this year. Nationwide E5 blending is expected by January 2027, while E20 remains a longer-term target.
The figures refer to the proportion of ethanol mixed with petrol. E5, for example, means a blend containing 5 percent ethanol.
Could benefit farmers
As government plans to increase ethanol blending, questions have emerged about whether Uganda can produce enough agricultural raw materials without affecting food supplies.
Bukona Agro-Processors managing director Pravin Kekal said the planned expansion could create a market for farmers rather than threaten food security.
He estimated that E20 blending would require between 240 million and 300 million litres of ethanol annually, supported by about 600,000 tonnes of maize.
At an average yield of two tonnes per acre, he said, producing that quantity would require approximately 300,000 acres.
‘I don’t think there is any challenge about food security; rather, we should take this as an opportunity,’ he said.
However, meeting the projected demand would depend on crop yields, land availability and reliable supply chains. These would need to be managed to ensure increased ethanol production does not undermine food production.
Reporting poor-quality fuel
Government is also emphasising fuel-quality checks as ethanol blending expands. Ministry of Energy principal petroleum officer Dean Tashobya said motorists must report suspected fuel adulteration and use mobile laboratories to check fuel quality.
Tashobya also asked the public to report suspected fake licences.
Uganda is expanding ethanol blending, with focus now put on enforcement of licensing requirements and regular fuel testing to ensure producers comply with the law, consumers receive good-quality fuel, and farmers can benefit from the growing demand for agricultural raw materials.