Bangladesh’s Engine Oil Market Booms, Sales Double in Five Years2 min read
The annual sales of engine oil in Bangladesh have seen significant growth, more than doubling to Tk 8,000 crore in 2024 from Tk 3,616 crore five years ago. This expansion has been fueled by higher prices, increased mobility, industrial growth, and overall economic activities stated in a report.
The demand for lubricants has risen alongside industrial growth due to their essential role in machinery maintenance and functioning. Consumption has also increased due to higher economic activity, electricity generation, and greater mobility.
Bangladesh’s lubricants market comprises approximately 200 firms, with an estimated consumption of 1.77 lakh tonnes in 2023, up from 1.6 lakh tonnes five years ago. The automotive sector drives 68 percent of the annual demand, followed by the industrial sector at 38 percent, with the remainder consumed by the marine and agricultural sectors.
Read more: Bangladesh Exports Hit Record $50 Billion in 2024
Around 16 to 17 companies locally blend base oil with chemical additives to produce lubricants for various applications. However, the sector faces challenges with high import duties 38 percent on base oil and 49 percent on refined lubricants affecting cost competitiveness.
Key players in the market include Mobil Jamuna Lubricants, Fuchs Lubricants, Trade Services International, Rahimafrooz, and Ranks Petroleum. Mobil leads with a 30 percent market share, followed by British Petroleum at 10 percent and Total at 8 percent. The remaining market is served by smaller, lesser-known brands.
Despite the growth in product value, consumption has not kept pace, attributed to rising prices, import tariffs, and a stronger US dollar. Recent declines in industrial production and transportation activities have also led to reduced demand for engine oil, especially in sectors like trucking, a major consumer.
The market outlook remains optimistic, with an expected annual growth of 8 percent over the next five years. However, future growth will largely depend on the recovery and expansion of the automotive and industrial sectors.
For more updates, be with Markedium.
