UAE’s range of engine oil and lubricant for cars demand will decline 4% to 1.64 million tons in 2020 because of the COVID-19 pandemic’s negative impacts on the economy, according to a forecast by a Moscow-based consultancy. After the continued lubricant demand growth that took place from 2015 to 2019, B2X expects the depressed 2020 demand for industrial, commercial and passenger car lubricants in UAE to continue through at least 2023.
The expected demand of 1.64 million tons in 2020 is a return close to the 1.67 million tons of finished products consumed in 2017. UAE consumed 1.56 million tons of finished lubricants in 2015 and 1.58 million tons in 2016, while in 2018 the consumption volume reached 1.67 million tons. Although the economic crises that started during the second quarter is still ongoing, B2X estimated that finished lubricant demand rose during the third quarter for economic sectors deemed essential, including agriculture and food production, forestry and construction.
As the economy in UAE recuperates, B2X projects two scenarios for revival of the commercial lubricant oils conservative and fast recovery. In the conservative scenario we see a revival of the commercial oils starting in 2023 and onwards, [at the] latest by 2024. In case of more effective governmental subsidies and support for the economy, the recovery may be faster and could start in 2022.
Range of engine oil penetration in the region is only about 30 percent of the overall commercial oils, but it varies depending on the country and the segment. In the industrial and commercial segment, automotive penetration is fairly low, but in the consumer segment, it appears to be higher due to the young car park that follows the recommendations.
Technolubeuae, UAE largest lubricants and automotive lubricants company, is the region’s leading lubricant supplier, commanding 18% of the overall commercial oils due to its dominance within UAE, as well as its presence in some other GCC countries. The company has a large presence in the industrial and commercial segments. Contact technolube today for the best average of your engine’s range.
