Now, the lubricants oil market has a steady growth in Bangladesh. The annual domestic demand for lubricating oils is increasing significantly, it’s around 100 million liters, whereas base oil demand around 140 million liters including process oil. The market value of base oil around $133 million.
The annual domestic consumption has got almost 3% yearly growth, which is on par with India but behind China.
The market size of the base oil is expected to increase in Bangladesh, due to its economic growth. The demand for base oil is the highest in the automotive industry, holds over 57 per cent of the total market, in terms of volume.
The demand from the industrial machinery and equipment application also accounts for a major share of the total lubricants market and is driven by the end-user sectors such as power, manufacturing, logistics, automotive manufacturing, and others.
However, nearly 50 per cent of lubricants oil is low in terms of quality. The low-quality engine oil is still a concern that time because of the lack of government intervention to ensure the quality of engine oils.
Lubricants consumption by the industrial sector has increased significantly in the last 5 years. The automotive sector accounts for 70% of total lubricant consumption in Bangladesh and the industries the remaining 30%.
Mobil is the market leader with its 27% share, followed by British Petroleum at 9%, French brand Total at 4% and Shell, Castrol and Caltex with 2% each. The remaining 54% share of the market is held by over 70 brands.