Currently, the engine oil market of Bangladesh is a hostile one. Those oil players have established their footholds already here, with international brands; are struggling to sustain their market share.
Recently, the markets insiders have brought out a concerning message for the brands those who are concern about their shelves.
Their statement is that existing trademark brands are losing 5% of its lubricant shelves every month in Bangladesh.
With more than a hundred brands on the shelf, this market is growing steadily.
Last year, the demand for the total engine oil market was around 160,000 tonnes.
The Daily Star, a reputed newspaper of Bangladesh reported that the engine oil market has grown at nearly 15% during the last three years.
Also, we observed that lubricants consumption has increased by 60% during the last nine years, where the market has received around 5% to 6% annual growth.
Market Insiders assumed that engine oil consumption likely to be around 165,000 tonnes for the year 2019.
The demand from the industrial machinery, equipment application, and the growing motorization rate is the key to this demand which will, in turn, increase the demand for base oil.
Also, the growing industrial sector requires a greater import of efficient machinery to be used in the factories. Various automotive vehicles in the transport sector require lubricants too, which come from base oil.
The value of this base oil market is around $152 million.
Therefore, the base oil demand is expected to witness steady growth in Bangladesh. And the market size is expected to increase due to these factors amid its economic growth.
To review that assumption, we have talked with several oil brands and tried to find out the exact market size of this growing market.
Most of them agreed with that forecast; however, few marketers are expected that the market would be 175,000 tonnes by the year 2018-2019.
In an interview, Syed Nazib M Rahman, Director to Runner Lube and Energy Limited, said “Last five years, Bangladesh engine oil market has a growth of around 15-17%. We are expected to the growth would be even more than 15% in the next five years as the economy is growing.”
Also, our interviews with the brand persons in the 14th Dhaka Motor Show 2019 has revealed, that the automotive oil segment should bring to control.
The market is being saturated because of the regular entrance of the by-name brands.
And those brands are not maintaining this trade according to the lubricant norms in comparison to the trademarks.
In this backdrop, Mr Nazib said “Overall Bangladesh Lubricants Market is saturated, especially in the automotive segment. The industrial segment is coherent with lubricants manner.”
Many trademark brand marketers asserted that we all together should know the real trade of lubricants with a standard manner; the market would not be over saturated.
Market insiders think lack of govt. intervention on the policy to monitor this trade make this market uncontrolled one.
And it is high time to bring strong regulations to change this prevailing situation and help the industries and also protect the environment in the process.