Middle East Conflict Drives Lubricant Price Hike in Bangladesh

Bangladesh's lubricant market is facing a sharp price surge due to rising import costs and supply disruptions linked to the Middle East conflict. The cost of base oils, which make up 75-98% of a lubricant's formulation, has increased by as much as 70% since the conflict began on February 28th.

The prices of base oils have jumped from $850-900 per tonne before the crisis to $2,000-2,200, with synthetic base oil prices exceeding $3,200 per tonne. This increase in import costs is driving up retail lubricant prices, making vehicle maintenance more expensive for consumers.

Industry executives warn that further price hikes and instability could follow if conditions in the Middle East do not improve. The Bangladesh Lube Blenders Association estimates the national lubricant market at about Tk8,000 crore, with annual demand of 160,000-170,000 tonnes.