The Strait of Hormuz crisis highlighted the value of used oil as a domestic resource, prompting countries such as Japan and Australia to rely more heavily on rerefined base oils to reduce dependence on imported base oils. Both have since emerged as Asia’s leading RRBO markets, speakers said during a panel discussion at a conference in Singapore.
The disruption has exposed Asia’s dependence on imported crude. Around 60% of the region’s crude comes from the Middle East and many Asian base oil refineries cannot easily switch feedstocks. While India and China helped ease shortages by redirecting cargoes, the crisis has reinforced the need for stronger domestic sources of base oils, including rerefined products.
Elsewhere in Asia, however, collecting enough high-quality used oil remains a major obstacle, while negative perceptions of RRBO continue to limit wider adoption.
Extended producer responsibility regulations, which require manufacturers to collect and manage products at the end of their life, are not enough on their own. What matters most is collecting large volumes of uncontaminated used oil, particularly from workshops, speakers at the conference said.
Malaysia’s oil and hydrocarbon sector generates about 9% of the country’s waste, yet “recovery is not happening and government intervention is needed,” said Gunaprasath Bupalan, head of strategic communications at Malaysian rerefiner Pentas Flora. “With 30% to 40% contaminants in the bin, we need proper segregation technology and a mindset change,” he added.
Others called for greater collaboration to improve collection systems and ensure consistent RRBO quality. Shailendra Gokhale, managing partner at India-based consultancy Rosefield DAA, said an association of rerefiners could be formed in the coming months, helping develop the industry’s ecosystem.
Timothy Langlais, chief strategy officer at German rerefiner Puraglobe, argued the industry should stop emphasizing the word “recycled.” If an RRBO meets the same technical specifications and performance standards as a virgin base oil, he thinks it should simply be treated as another formulation option.
Combined with improved collection systems, speakers said wider RRBO adoption could strengthen Asia’s supply resilience while reducing dependence on imported virgin base oils.