By Zulker Naeen
Bangladesh attained 7.2% GDP growth in the last fiscal year despite ADB’s forecast of 6.9% growth while Bangladesh was able to contain inflation at 5.4% in the last financial year.
Perhaps, the booming economy of Bangladesh is considered as a business opportunity for lubricants oil, however, it is the most unresearched market in general.
Few statistical data, old news reports and market insights are available, however, those are insignificant in a sense.
However, the traditional practice, distribution policy, credit business, liberal toll blending, existing lubricants oil marketer, newly entrant brands, and the lack of awareness of lubricants oil product has already made this market unpredictable.
In terms of category, Bangladesh lubricants oil market, observed as few segments like passenger vehicle oil, motorcycle oil, truck and heavy-duty engine oil, and industrial oil, etc. More segments like railway oil, marine oil, and aviation oil are insignificant compared with other lubricant oil segments.
However, the monograde market still holds the significant market share for the lubricants. The agriculture-based economy and the current standard for this industry kept this barrel market regular.
Apart from the monograde segment, the need for electricity, the growth of power plant, and the arrival of new vehicles in the transportation are creating new opportunities for the marketers.
Looking into these insights, newly lubricants oil brands has entered in the market, more brands are waiting to take the entry.
According to a source, “There are more than 350 application has been filled in Bangladesh Energy Regulator Commission for getting permission to bring lubricating oil brands in Bangladesh”
However, it is alarming, many local brands are being disparate to market their products deploying the toll blenders, which is seen as the forthcoming peril for the existing brands and lubricants oil marketer.
The toll blending facility, an open barrel making policy has liberalized this uneven practice, thus created an opportunity for the local lubricants oil business.
It is an observation, the existing monograde marketers are trying to get the market share in the multi-grade market using their brands forecasting the future market.
This is how, local lubricants oil brands are getting their control over the monograde market, may lead the trustworthy monograde brands to lose their market share gradually.
There are too many existing local brands in the market which has no global trademark.
Hindustan Petroleum, National Oil, Gulf, AP Oil, Sigma, J-one and many other are the reliable and trustworthy barrel oil marketer in Bangladesh.
The unauthorized local brands are trying to enter a market with competitive market pricing, however, this belief varies from one marketplace to another marketplace, even one segment to another segment.
Above all, most monograde users are not aware of the quality lubricants oil products, still which is the major constraints for the overall monograde market.
More local brands will seek opportunities in this barrel market. However, the open barrel making policy, and the lack of unified policy among the toll blenders may make this monograde market brand loyalty less, even a volatile one.