Uganda will begin commercial oil production in the second half of the 2026/27 financial year, according to NilePost.co.ug. The government has pledged that all revenues from the oil sector will be strictly invested in infrastructure and saved for future generations. Oil proceeds will be channeled into the Petroleum Fund. The Ugandan government has been earning income from the oil sector for several years through taxes, royalties, and fees paid by companies involved in upstream development and pipeline construction. Government officials warn against expecting large immediate fiscal gains from oil, comparing initial oil revenue to modest business returns. Initial oil revenues are projected to amount to about 0.8 percent of non-oil revenue. Experts warn that oil revenues alone are insufficient for Uganda's energy transition funding needs, according to AllAfrica. The government rejects claims that oil revenues are being lost or exported abroad.