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Bangladesh Lubricants Oil Market In Backward Move

Bangladesh lubricants oil market in a backward move
Bangladesh lubricants oil market in a backward move.

Bangladesh is going backwards, whereas the global base oil market is shifting to high-quality oils to meet the requirement of the modern machinery.

In Bangladesh, nearly 45 per cent market of the barrel oil segment is captured by low-quality lubricants.

These are being produced from the recycled base oil, low-quality base oil, or sometimes from the straight mineral base oil without mixing any additives.

The additive less mineral base oil is strictly prohibited to use as an engine oil.

Few lubricants oil manufacturers are blending non-standard engine oil by mixing some virgin base oil with recycled base oil, which damages equipment worth million USD every year.

The low-quality engine oil is a big concern now.

Lubricants Shelves Have No More Space To Place New Brand

Zulker Naeen
Lubricants shelves have no more space to place your new brand now

Lubricants shelves have no more space to place your new brand now. You might get surprised hearing such a statement. For your information, It is not a surprising one.

Bangladesh Lubricants Oil market has become more overstated in terms of brand names and local products.

A national sales manager, of a reputed lubricating oil brand in Bangladesh, said, even India doesn’t have too many oil brands like Bangladesh have.
More lubricants oil brands are yet to enter Bangladesh.

In 2017, Bangladesh Energy Regulatory Commission released that, “Around 350 application has been filled to open LC for importing abroad oil brands”
Now, lubricants oil retailers are welcoming the representatives of newly entered brands.

It can be said that the situation is being tough for the overall market. Existing lubricants oil brands with small market share, are struggling to hold their market shares.

Why Lubricants Oil Brands Are Losing Market Share In Bangladesh?

Zulker Naeen
Why lubricants oil brands are losing their market share in Bangladesh

Branded barrel oil, especially the 205-litre monograde oils are facing a hard time because of the unauthorized local brands.

Many unauthorized and irregular barrel brands are available in different names in different areas of Bangladesh. Even the users don’t know about their quality. Lubricants oil sellers sell those low-quality products to make the profit.

How irregular brands are making their barrel oils? Mostly these local brands depend on the toll blenders, which has created an open field to make their products. It has liberalized an uneven practice, thus created an opportunity to do oil business for the local blenders.

Already, more than thirty local brands hold their space in different regions and progressively they are making their product regular. In such a way, branded barrel brands are losing their market.

Earlier, we have identified this issue as a forthcoming peril for the existing popular lubricants brands. Many lubricants oil brands are struggling now to enjoy their brand values and gradually losing their market shares.

Lubricants Oil Brands With Little Market Share In Threat

Lubricating oil
Lubricants oil brands with little market share in threat

Bangladesh lubricants oil market is now in a transformed nature, because of various newborn key factors. Those key issues are being ignored by many lubricating oil companies with a small market share.

The market already holds more than a hundred oil brands. Still, upcoming companies are being interested to inject more brands hoping it is an open market.

But we should remember, it is an open market to enter, but very difficult to create loyalty for our brands.

The annual domestic demand of lubricating oils is increasing significantly; it’s around 100 million litres, whereas base oil demand around 140 million litres.

Existing brands are gradually losing their little market shares, and they don’t have that exact reasons why they are losing it. It is high time to understand the changing market to sustain. They should rephrase their business strategy with proper market positioning.

The more traditional strategy they follow, the more market share will be in a threat.

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