In Bangladesh, the trade of lubricants oil is a critical one. This market isn’t like a regular consumer market, where it is difficult to analyze its value chain.
We found least reporting and limited research on this market. It is under the power and energy sector. Here, the marketers of the global oil brands are authorized dealer by nature. Like Mobil, Shell, BP, and Castrol are following this distribution-based business policy in Bangladesh.
Few marketers have their own blending facility. In 2001, the government has liberalized policy to blend, import and distribute the lubricants in the market. Since then, more than 100 lubricants brands have entered into this liberalized market.
We found the distributors, retailers, and garage mechanics are the key players here in this trade. Market insiders say the leading brands are struggling to hold their market share in this market. Like others, local brands are taking the market share gradually.
Many local brands are being disparate to market their products deploying the toll blenders. The number of existing brands is 150 and the number is increasing day by day. More lubricating oil brands are yet to enter in this open market.
In this current trade, the leading brands are enjoying their brand values is not always true. Here, the lubricants oil trade, with global and local brands altogether, made it more competitive.
The annual domestic demand for lubricating oils is increasing significantly; it’s around 100 million liters.