Uganda: Country to Blend Fuel With Ethanol

Uganda will soon make it compulsory for oil companies to blend petroleum with a variety of bio-fuels as the country tries to beat rising oil prices by reducing dependence on petroleum, a senior government official said last week.

Energy Minister Daudi Migereko says the policy, which covers ethanol, bio-fuel, wind and solar, is essentially ready and will require oil companies to blend petroleum with ethanol to a maximum ratio of 20 per cent.
Uganda’s sugar industry produces large quantities of ethanol but oil companies have been reluctant to blend it with petroleum, arguing that the majority of motor engines in the country not optimised to burn on ethanol and will suffer corrosion.

But with oil prices currently at an unprecedented peak, the government is taking a keener interest in fuel alternatives.

Industry players who spoke to the The EastAfrican said they had not been consulted over the proposed policy but warned that factors surrounding the supply side of ethanol needed careful study since the local sugar industry lacked the capacity to supply adequate quantities. This could make blending uneconomical as a result of high ethanol prices and could also distort food production.

Without a stable source, there is a danger that food prices could skyrocket as energy competes with nutritional needs from source crops, the industry warned.

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