A group of major lubricant companies in Chile have asked the country’s competition authorities to approve the establishment of a collective waste lubricant management organization, according to a report by the Latin American financial news service CE Noticias Financieras.
This development is part of Chile’s efforts to improve the collection, recycling and disposal of lubricant oils, setting recycling targets to enhance waste management and promote sustainability. This was formalized by a Supreme Decree in November 2024 and the Extended Producer Responsibility framework.
The law defines seven priority products with lubricating oils being one of them and will require lubricant suppliers by 2027 to ensure their products are recycled after use.
The group comprises Copec S.A., Empresa Nacional de Energía Enex S.A., TotalEnergies Marketing Chile S.A., YPF Chile S.A., Esmax Distribución SpA, Luval S.A. and Liqui Moly Chile SpA.
Chile is dependent on imports of finished lubricants and components. Copec was the largest importer in the segment with estimated volumes between 75,000 and 100,000 liters per year. The company is followed by Shell with 25,000 to 50,000 liters and Total, Lubrax and YPF with up to 25,000 liters each.
That is set to change after Via Limpa, a subsidiary of Copec, won approval for a rerefinery designed to process 35% of waste oil generated in the country, or 126,000 metric tons per year, with a base oil yield of 70% of the feedstock input.
Under the Extended Producer Responsibility Law, authorities must review whether the rules and procedures of the proposed collective system align with competition laws.