The annual domestic demand for lubricating oils is increasing significantly, it’s around 100 million litres, whereas base oil demand around 140 million litres including process oil. The market value of base oil around $133 million.
However, nearly 50 per cent of lubricants oils are low in terms of quality.
In our country, there are few lubricants oil manufacturers, which are blending non-standard engine oil by mixing some virgin base oil with recycled base oil, which damages equipment worth million USD every year.
Recently, in 2018, a survey observed that the lubricating oil is being imported through under-invoicing to enjoy price benefit. As a result, the government is losing its yearly revenues.
This industry needs government intervention to ensure the quality of engine oils to save national wealth.
Government standard regulations and proper monitoring can only control the increase of low-quality lubricants market growing trend.