Two economic powerhouses, India and China, are the largest net base oil importers in the world, and an Argus Media analyst predicted recently that they will remain in that position in the foreseeable future.

South Korea, China and India are key markets in the Asia-Pacific region, which is the largest importing and producing region in the world. In the backdrop of China’s declined imports, India is absorbing the region’s surplus volumes, according to Tara Tang, base oil market analyst at Argus Media.

In the surprising turn of events, the Base Oil market remained unchanged throughout May 2024 to settle at USD 1915/MT Group II H600 and USD 1606/MT Group II H100, FOB Texas USA.
― Q1 2024

 

India’s Base oil market has become a matured one growing at 7% to 8% per annum. Most of the base oil is imported, with no major expansion seen in near future by the Indian State Oil Base Oil producers IOC/HPCL/ BPCL/Chennai Petroleum.

With a population of about 1.27 billion and estimated current annual GDP growth of 5 percent, as per the reports the nation anticipates high growth in its automotive industry and corresponding growth in lubricants. Total base oil demand in India today is 2.4 million metric tons with IOC/ BPCL/HPCL/Chennai Petroleum producing 605,000 MT per annum of Group I and 525,000 MT per annum of Group II Base Oils.