India’s Sept base oils output holds firm

India’s base oils output stayed higher in September for a second month but still lagged domestic lube demand by the largest volume in three months.

The dynamic highlighted India’s steady base oils production capacity in recent years, while its lube demand has continued to trend higher.

The growing gap between domestic output and demand increased the country’s reliance on imports to cover the shortfall.

Base oils output of 124,000 tonnes in September edged down from 127,000 tonnes the previous month, government data showed.

The volume was still at the higher end of a typical 110,000-130,000 tonnes/month range in recent years.

The steady volume contrasted with a 14% rise in India’s lube consumption in the two years to 2024. Consumption was up a further 3% in the first nine months of this year.

Steady output and rising demand increased India’s reliance on base oils imports and triggered a wave of plant-expansion plans in recent years to reduce that reliance.

The first of those new units is set to come online by year-end.

The subsequent rise in India’s domestic base oils production capacity is likely to cut its imports requirements.

Any such slowdown in imports would coincide with the recent or upcoming start-up of several major new base oils units in other nearby markets.