Lubricant prices in Bangladesh have risen sharply this year as disruptions in the Middle East push up base oil, freight and insurance costs. Some products are now as much as 70% more expensive, according to industry representatives.
Engine oils and transmission fluids have risen in price at retail outlets, adding to motorists’ costs alongside higher domestic fuel prices. Industry officials said the lubricant increases are not directly linked to the government’s fuel-price adjustments but reflect tighter international supply and higher import costs.
The Bangladesh Lube Blenders Association estimates annual lubricant demand at 160,000 to 170,000 metric tons and values the market at about 80 billion taka (U.S.$650 million). Domestic plants blend more than half of the lubricants consumed in Bangladesh, with imported finished products making up the rest. Automotive applications account for about 47% of demand.
Bangladeshi blenders import Group I, Group II and Group III base oils, much of them from the Middle East, along with specialty additives. Freight costs and access to foreign currency affect both blenders and finished-lubricant importers.
Md Delwar Hossain, senior vice president of the Lubricants Importers Association of Bangladesh, said lubricant import costs rose 5% to 10% in the first weeks after the conflict began Feb. 28. Some products have since increased by as much as 70%, he said.
“The price surge in lubricants is not directly connected to the government’s decision,” Delwar told The Business Standard on Monday. He attributed the increases to international supply disruptions and said further price increases were possible if the situation persisted.
Md Shahin Alom, senior general manager of MJL Bangladesh, which blends and markets Mobil-branded lubricants, said base oil prices had risen much more sharply. Material that costs $850/t-$900/t before the crisis now costs $2,000 to $2,200, he said. Synthetic base oils have topped $3,200/t, while Group II and Group III supplies have become particularly difficult to secure.
The disruption has affected several important base oil sources in the region. Qatar’s Pearl gas-to-liquids plant in Ras Laffan, operated by Shell in partnership with QatarEnergy, was among the facilities hit. Shell said one of the plant’s two trains was damaged in an attack March 18 and later estimated that repairs to train two could take about a year.
Other regional facilities have also been affected. Attacks damaged Bahrain’s Sitra refinery, a Group III base oil producer, on March 5 and 9. A March 10 drone strike sparked a fire at ADNOC’s Ruwais complex in the United Arab Emirates and led to a refinery shutdown. On July 25, a fire severely damaged the Alhamrani Fuchs lubricant plant in Yanbu, Saudi Arabia, with regional reports linking the incident to strikes in the area.
The disruption to shipping through the Strait of Hormuz has added to the pressure. Delwar said freight and insurance costs had increased, while Alom cited limited vessel availability and higher premiums on Middle East shipments. Importers are also facing difficulties obtaining dollars and opening letters of credit, according to industry participants.
The effects are being felt elsewhere in Asia. Castrol raised prices twice in India during the first half of 2026, while Gulf Oil Lubricants India increased prices as input costs rose. Pakistan State Oil’s listed price for one four-liter motor oil pack increased about 10% between March and August. Pertamina Lubricants reported an average 17% increase in Indonesia from June.
Bangladeshi retailers are seeing similar increases. Rahmat Motors proprietor Md Rahmatullah said a 4 liter container of Mobil Special 20W-50 rose from 2,050 taka in January to 2,650 taka in September, while Mobil 5W-30 increased from 2,600 taka to 3,500 taka. Mobil 1 10W-40 rose from 6,200 taka to 7,200 taka.
A 4 liter pack of Japanese CVT FE transmission fluid increased from 5,000 taka to 7,000 taka, a 40% rise. The examples cited by Rahmatullah are below Delwar’s estimate of increases of up to 70% for some products.
Motorcycle oils have also become more expensive. Mohammad Rasel of Fair Auto said some engine oils cost 100 to 200 taka more per liter than several months ago. One rider told The Business Standard that an oil priced at 850 taka in January now costs 1,150 taka.
Retailers expect further increases as they replace older inventory with products bought at higher prices. Industry participants in Bangladesh and India also warned that higher prices for branded lubricants could push some consumers toward cheaper, lower-quality or counterfeit products.
For blenders and importers, much will depend on replacement base oil costs and whether shipments through the Gulf become more reliable.