Op-Ed (UGNEWSLINE) – Uganda’s diesel price surge is no longer just a concern for motorists. In September 2026, diesel prices were 42.5 per cent higher than a year earlier, according to the Uganda Bureau of Statistics. The increase is being felt in the movement of raw materials, the distribution of finished goods and the running of equipment that depends on liquid fuels. For manufacturers already managing tight margins, it is another reminder of how quickly operating costs can change.
But there is a question worth asking beyond the immediate price shock: how much are factories paying for the fuel itself, and how much for inefficiency in the systems that convert energy into heat?
Industrial energy discussions tend to focus on electricity, yet many production lines depend just as heavily on heat. Dairy processors need steam for pasteurisation and cleaning. Breweries and food manufacturers require controlled temperatures at different stages of production. Tea factories rely on heat for drying. When these systems are unreliable or inefficient, the cost is reflected in every unit produced.
Not all Ugandan factories use diesel to generate steam. Nevertheless, the current price surge exposes a wider vulnerability: reliance on outdated or inefficient energy infrastructure can leave manufacturers with operating costs that remain high even after fuel prices ease.
Manufacturers should therefore look beyond the price of fuel to the cost of producing each tonne of steam. How efficiently does the boiler convert fuel into usable heat? Is its capacity suited to production demand? Would continued maintenance deliver the necessary improvements, or has the time come to invest in a more efficient system? Asking these questions is essential to making decisions that strengthen competitiveness over the long term.
Modern, purpose-built biomass boilers can be part of that response. Uganda’s agricultural economy generates residues such as sugarcane bagasse and rice husks that, where suitable, can provide fuel for industrial steam generation. Paired with efficient boiler technology and dependable operations, these resources offer manufacturers an alternative to some conventional fuels and an opportunity to make productive use of agricultural by-products.
The case must still be tested carefully. Biomass is not automatically sustainable, and local supply chains are not immune to higher transport costs. Feedstock availability, responsible sourcing, combustion efficiency and the fuel being displaced all shape the environmental and commercial outcome. The aim should be to deliver reliable steam at a competitive long-term cost, rather than merely substitute one fuel for another.
There is also the question of capital. A modern boiler plant represents a significant investment, particularly for a manufacturer looking to direct funds towards expanding production. Through a Build–Own–Operate model, an energy specialist finances, installs and operates the steam plant. This enables manufacturers to access Steam as a Service, purchasing steam under agreed contractual terms without having to invest in or manage the boiler infrastructure themselves. The arrangement allows businesses to preserve capital for their core operations while benefiting from specialist energy management and reliable steam supply.
Uganda’s Fourth National Development Plan puts sustainable industrialisation and value addition at the centre of the country’s growth ambitions. Achieving those ambitions requires manufacturers to pay attention to the energy systems behind their production lines. The Energy Efficiency and Conservation Act, enacted in 2026, also points towards greater emphasis on energy performance and responsible biomass use, although its wider provisions have yet to come into force.
Manufacturers cannot control global oil prices. They can make deliberate decisions about the technology, fuels and operating models on which their production depends. Fuel prices will rise and fall; the opportunity to build more efficient, resilient industrial energy systems should not be deferred until the next shock.
The write is Atharva Tembhekar , Director, Lean Energy Solutions.
