With a 164.7 million of a population, Bangladesh is experiencing yearly 5-6% GDP growth for the last two decades. Having a rapid implementation of economic reforms, the demand for base oil and lubricants is continuously growing relative to its growth.
Only state-owned oil marketing companies were allowed to blend, import and distribute the lubricants till the year 2000.
However, from the year 2002 to 2011, the sale of minimum grade SC/CC products by different private oil companies brought a major shift in this market.
Then, the government-owned oil agencies started to lose market share to private blenders and importers of finished lubricants.
Now, it is easy to review the size of lubricants trade in Bangladesh. However, business Insiders has identified this market as a silent trade in comparison to others.
Not surprisingly, the annual domestic demand for lubricants is around 100 million liters, whereas base oil demand around 140 million liters. The market value of base oil is around $133 million.
The annual domestic consumption has got almost 3% yearly growth, which is on par with India but behind China.
This market holds more than 50 brands altogether and the number is increasing day by day.
However, the lack of market monitoring, the current status of the transport system, least reporting make this market unnoticeable to the public.
In recent years, the growth of power sector has got publicized because of the national agenda, which has also highlighted the industrial lubricants market in Bangladesh.
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.
Lubricant consumption in 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%.
So, this unnoticeable market now is a competitive one. Already, lubricant players have established their footholds here, with international brands. Among them, Mobil is the most established brand, with a strong presence in the lubricants shelves.
Bangladesh lubricants market is a growing one. However, market insiders think lack of govt. intervention on the policy to monitor this trade make this market uncontrolled one.