Need to Know
Having made it through a global pandemic, lockdowns, unprecedented interruptions in supply lines, hurricanes, floods, fires, skyrocketing increases in costs, labor shortages and a myriad of other challenges, one would hope for some return to normalcy in the lubricants business. But from what we have seen over the past year in terms of lubricant demand and pricing, that’s certainly not the case.
Although lubricant demand was on the rebound as the economy climbed out of the pandemic in 2021, it started to nosedive in the second half of 2022. The retreat was due to several factors. These included cautionary spending in response to inflationary pressure driving the price of lubricants to unseen highs. This came by way of eight price increases in 2021 and another four in 2022. Fear of a recession, the continuing push to extend drain intervals, growth in EVs, less driving due to high gas prices and remote officing, and other factors also suppressed demand.