The mono-grade lubricants still hold the lion’s share of Bangladesh market. The agriculture-based economy and the current industry standard kept this mono-grade market a regular one.
Since 2001, the minimum API standard was set at SC/CC to ensure a minimum standard for this industry. Then, from 2002 to 2011, the blending plants under the private oil companies have brought a major shift in this lubricants market.
According to the Bangladesh Lube Blenders Association, the annual demand for lubricants oil is about 160 million litters now. Besides, under the public and private sector, the production capacity of 18 lubricants blending plants is about 200 million litres.
However, the alarming matter is that many local brands are trying to market their products by their name deploying the toll blenders, which has identified as the forthcoming peril for the existing lubricants brands.
The blending facility has created a market for an open barrel-based monograde product which has liberalized an uneven practice.
Many unscrupulous businessmen are involved in the recycled barrel oil business in this market causes to the availability of the lower-standard barrel products.
Above all, most users are not aware of the good lubricants oil products, still which is the key barrier for the upcoming brands.
However, more entrants will enter in this monograde oil market to make this market more competitive. Truly, it is challenging for those to play with this market, even to establish in the lubricants space.