India’s lubricants consumption extends its rise for a seventh straight monthStrong demand growth keeps the base oils supply-demand balance tight, with the seasonal Q1 pick-up underwayAny delay to the availability of new domestic base oils supply increases the reliance on imports to meet rising demand.India’s lubricants demand rose in January for a seventh straight month, sustaining pressure on base oils supply from domestic and overseas sources to keep pace.Total lubricants consumption rose to 405,000 tonnes in January, up 3% year on year, Ministry of Petroleum and Natural Gas data showed..The sustained rise in consumption kept India’s base oils supply-demand balance unusually tight through the second half of last year, with early signs suggesting the trend is extending into the start of this year..Key Highlights· Monthly lubricants consumption exceeded 400,000 tonnes for a fifth straight month, highlighting India's sustained demand growth..India’s December Lube Demand Rises, Hits Record 2025 High.· Before September 2025, it took 25 months for demand to exceed that level five times. · India’s lubricants consumption typically peaks in the first quarter of the year as blenders seek to meet annual sales targets before financial year-end in March.· Broader demand indicators remain supportive, with India’s automobile sales rising in January for a sixth straight month, with strength across everything from two-wheelers to passenger cars and tractors..Market RepercussionsSustained demand growth is likely to magnify the seasonal first-quarter pick-up in consumption, keeping pressure on base oils supply to keep pace.An expected increase in India’s domestic base oils production capacity is likely to cover a growing share of rising demand..India’s December Base Oils Output Rises to Two-Year High.But the pace of consumption growth, and uncertainty over the timing of the market-availability of the new supplies, are likely to sustain requirements for large import volumes in the interim.A pick-up in shipments from the US to India in recent months, including in January and February, pointed to continued demand for additional overseas supplies..India’s December Base Oils Imports Fall To Ten-Month Low
