To be effective, lubricants need to meet quality standards and guidelines. In Bangladesh, the consumption of lube oil is increasing by about 12% against the global increase of 3.7%. Similarly, the disposal of used lubricants is harmful to the environment. In such a situation, lubricant manufacturers must use virgin base oil to make the finished lubricant. But this is not possible with imported recycled lubricants.
The automotive sector accounts for around 70% of total lubricant consumption in Bangladesh. However, industries are also consuming large amounts of lubricants. In fact, the cement and steel industry consumes significant quantities of lubricants. Furthermore, the fertilizer and automotive sectors also consume a good amount. As the number of industries increases, the demand for lubricants is expected to rise further. This is why business owners should have an accurate knowledge of the lubricant market in Bangladesh.
The new Total Lubricants engine oil has been introduced in the market by the sole distributor in Bangladesh, Trade Service International. The company has launched a promotional program on Saturday in a city hotel. The launch was covered by a press release by Trade Service International (TSI).
In Bangladesh, the market for lubricants is highly competitive. There are several lubricant companies, but the market is partly consolidated. Only five companies account for 60% of total consumption. There are many other players in the market, but the five leading brands hold significant shares in the market. The competition among the players in the Bangladesh Lubricants Oil Market is increasing. This means that the customers have more options in terms of quality lubricants.
In terms of volume, the country consumes nearly 49,000 tons of lubricants annually. The government requires lube suppliers to be licensed. Only three of these suppliers are authorized to blend. Despite the strong demand, sales volumes decreased by seven percent in 2013 and 2014 in Bangladesh. The company is confident that growth will reach four to five percent in the coming years, with the GDP forecasts at six to seven percent. In terms of type, the market consists of SAE 50 and 20W-50 engine oils.
Quality lubricants are essential for engine performance. While lubricants are essential, Bangladesh’s consumption of lube oil is growing at 12% annually compared to the global average. The American Petroleum Institute (API) has revised its standards for lube oil, which includes improved compatibility with turbochargers. Despite these changes, Bangladesh still follows outdated standards. Furthermore, Bangladesh lacks proper quality control guidelines, leading to low-grade lube oil.
Synthetic oils are used in various kinds of engines. Among these are gas engine oils and diesel engine oils. Both of these lubricants provide excellent protection for IC engines. They also keep the engines clean and reduce friction. Total industrial lubricants in Bangladesh are the leading suppliers of synthetic oils. The company produces all types of engine oils, including semi-synthetic and mineral oils. These are suitable for different types of vehicles.
API SJ brand is used in Bangladesh for passenger cars and gasoline engines. This brand is still popular in Bangladesh. Apart from Total, other popular brands include Mobil, BP, Castrol, Shell, and Caltex. However, the brand Mobil dominates the market with 30 percent. In fact, it increased its market share from 26% in 2009 to 30% in 2013 – a growth of nearly 40% in a decade!
Bulk purchasers sell used lube oil to various industries. This process costs them between 35 Tk/L and 40 Tk/L. It is possible that other selling points exist in Bangladesh as well. After undergoing a mild treatment, the recycled lube oil is sold at retail selling points. In addition to Sowari Ghat, it is also sold at 105-130 Tk/L. In this way, lube oil is recycled and reused for the third time.