Engine oil prices shoot up

Prices of lubricants, particularly engine oils, in the local market have increased by Tk 30 to Tk 100 depending on the brands in a span of two months.

Importers attribute the price hike to a volatile exchange rate and skyrocketing shipping costs caused by the Russia-Ukraine war, while retailers said they had to increase the prices as importers are supplying the products at higher rates.

Prices of grade 0w-20 lubricants, usually used for hybrid cars, saw a sharp increase of Tk 300 which was earlier sold at Tk 3,000.

Md Omar Sharif, manager (sales) of HNS Group, the sole dealer of South Korean SK Lubricant ZIC, said prices of nearly half of the lubricant brands available increased for the increased carrying cost, fluctuating exchange rate and increase in the price of raw materials.

“Base oil and additives are the main elements of lubricant. Prices of base oil and additives increased globally that left impact on the local market,” he added.    

Syed Nazib M Rahman, director of Runner Lube and Energy Ltd, dealer of Indian SERVO brand lubricant, said the Russia-Ukraine war is disrupting the supply chain of the main element of the lubricant globally and the volatile exchange rate also added insult to the injuries.

Kamruzzaman Kamal, director (Marketing) of PRAN-RFL Group also echoed Nazib. 

Karib Ahmed, who imports Dutch lube oil brand Olympus, said the price of grade 0w-20 lubricants, usually used in hybrid cars, rose to Tk 3,300 which was earlier Tk 3,000.

A retailer Rafiqual Islam, proprietor of Sunrise Autos, said, “Prices all the commodities shot up. So is the case of engine oils. We increased the price as we have to pay more while sourcing.”

The automobile sector consumes around 70 per cent of the lubricants used in Bangladesh and the remaining 30 per cent is used in the industrial sector, stakeholders said.

In the automobile sector, passenger-carrying vehicles consume around 30 per cent of the demand, goods carrying heavy vehicles cover 60 per cent of demand and motorcycles consume only 10 per cent of the demand, according to market research.  

Md Ruhul Amin, a private sector job holder, said he bought Mobil Super 4t brand engine oil for his motorbike at Tk 400 a month ago and it is now Tk 500.

Md Haris, a driver of Ajmeri Glory bus service that shuttles between Sadarghat to Chandra, said, “We run the bus on a daily basis contract and the increase of lubricant prices crimps our profit margin.”

Ridesharer Md Habib Ullah came to Bangla Motor to change the lubricant of his motorcycle. He needs to change oil at least three to four times a month as he drives long. His expense increased by Tk 500.

Realising the price hike, some unscrupulous traders are coming up with non-branded lube oils which are mostly adulterated at a very lower price, alleged the retailers and users.