After the National Elections 2019, the retailers are now in the mood of trading the mono-grade oils, especially the barrel oil in a full swing.
However, it is the peak season for the monograde oil because of the harvesting time for the transplanted Aman between November to January.
We know that the mono-grade oils hold the significant market share of this market. The agriculture-based economy amid the outdated public transport and the industry standard are the key to this mono-grade segment.
Mostly, the agricultural pump-sets, shallow machines, second-hand machinery, local transports, and the repair industry are the key users of this mono-grade oil.
Earlier, the restriction on running unauthorized light vehicles on the main roads has impacted the overall lubricants market.
However, many unscrupulous businessmen are involved in recycled barrel oil business causes the availability of the lower-standard barrel products.
Above all, most users are not aware of quality oils, still which are the key barrier for this market.
For the last three years, the local oil traders have been increased dramatically. By nature, they are the floating businessmen who deal in this market beyond the value chain.
Most floating marketers are the barrel oil traders especially works with mono-grade oil by the local name. Most of them are involved in the lubricants oil business.
Unfortunately, this lubricants market lacks proper value chain which is the main barrier to identify its nature. Moreover, no more industry-oriented regulation brought by the government to monitor this trade which has created an avenue for the irregular traders.
Market observers have identified this engine oil market is one of the uncontrolled trades when we discuss the nature of monograde engine oil market.
Still, the low-quality engine oil is a concern in our country. And the absence of proper monitoring has opened the market for recycled oil as base oil, and non-use of the proper additive by the illicit lube blenders.