Why are lubricant prices rising?

Why are lubricants getting more expensive?

The lubricants demand remains high, in contrast to paraffin and other fuels. Due to the reduced demand for paraffin in particular, refinery capacities are being reduced worldwide. As a result of the reduced refinery capacity, global shortages of raw materials arise, which affect our production capacity of lubricants. Therefore, there is a mismatch between supply and demand and consequently a tightness in the base oil market.

The scarcity will continue for some time and cannot therefore be absorbed temporarily. This effect drives the price extremely high in a short time.

Additions scarcity

The petrochemical and related industriesën are also affected by reduced refinery production such as base oil for lubricants, additives and raw materials for plastics and adhesives. Another reason why lubricant price is rising is that additives are also obtained in the refining process and these too are reduced in availability.

As OlieOnline we know the market like no other and we know many roads to Rome. We will therefore do everything to offer you a good alternative if necessary, after all: Knowledge is our strength!

Take contact us here or read more on base oil shortages here.