The Indian state of Uttar Pradesh has effectively imposed a steep tax hike on lubricants by removing them from the list of items subject to its value added tax. Blenders warn that the move will lead to closure of manufacturing plants in the countrys most populous state.

Gulf Oil Corp. shareholders on Thursday gave a ringing endorsement to managements proposal to carve out the companys lubricant business. In a court-ordered vote, shareholders cleared the three-fourths majority required for the plan to move forward.

Lubricant marketer China Rerun Chemical reported that gross profits for the 12 months ended Aug. 31 increased 22 percent compared to the previous year, thanks a consolidated distribution network and higher quality products.

BP agreed to sell its aviation turbine oil business assets to Eastman Chemical Co. for an undisclosed amount, both companies announced last week.

The base oil market is shifting toward API Group II and III oils because of their advantages for formulating products such as automotive lubricants. But the trend also creates challenges such as a decline in supply of heavy oils and changes in lubricant formulating characteristics.