Africa has no dumping ground for lubricants
By Our Reporter
Cape Town, South Africa: The African lubricant market is not a dumping ground for lubricants that are not fit-for-purpose, said stakeholders at the 10 th ICIS African Base Oils and Lubricant Conference in Cape Town, South Africa. “Lubricant oils that do not meet minimum quality standards should not be allowed into the African continent,” said Siva Konar, Market Segment Manager, Middle East and Africa at Azelis. Konar explained that the limited base oils manufacturing capacity on the African continent should not be an excuse for dumping substandard products on the continent’s lubricant market. “It does not mean that because you don’t have base oil capacity, you must consume substandard quality,” Konar added, noting that “you should import good quality as defined by the base oil categories with the right saturate levels sulphur levels, not base oils that are being produced without the proper processes and systems.” For his part, Dr. John Erinne, chief executive officer of Matrix Patro-chem Limited Lagos, Nigeria, said that dumping of substandard finished lubes on the African lubricant market is a cause of concern to stakeholders. “As per finished lubes, I agree that Africa is not a dumping ground for substandard products. Nigeria is at the receiving end of an influx of substandard finished lubes, and I understand that it is beginning to manifest in South Africa,” Erinne emphasised. “Africans have no option but to continue to import base oils from other parts of the world because we don’t have the capacity to produce base oils.”
Similarly, Cliff Classen, Managing Director of Penthol Pty Limited acknowledged that substandard finished lubes are beginning to manifest in the South African lubricant market. He explained that end users bear the brunt of substandard finished lubes because “they think they are using the right engine oil, but it is fake”. Cliff explained that most end users only realise that they have bought substandard finished lubes when they take their cars in for servicing.
Group II Gaining Traction in Africa
By Our Reporter
Cape Town, South Africa: Group II lubricants are gaining traction in the African lubricant market, stakeholders told BND at the 10 th ICIS Africa Base Oils and Lubricant conference in Cape Town, South Africa. “It is happening at a faster pace now,” said Siva Konar, Marketing Segment Manager, Middle East and Africa at Azelis. “Formulations in lubricants are changing to Group II quickly and fast. The volumes of Group II base oils going to East, West, and North Africa are an indication of transformation in the African lubricant market." However, he added that “it is difficult to put a timeline on when the transition will happen unless there is legislation to back it.” For her part, Tolulope Alabi, head of business development, supply at OVH, Nigeria, said that Group I lubricants are still dominant on the Nigerian lubricant market but acknowledged that the dominance of Group II on the international lubricant market is
influencing the uptake of Group II on the local lubricant market. “Most of our base oil demand is Group I,” said Tolulope. “We have to take Group II because that is what is available on the international market. We may find ourselves moving in that direction,” she added.
Tayo Ayodeji, business development manager, Energy practice at Kline Company, in her presentation at the 10 th ICIS African Base Oils and Lubricant Conference in Cape Town, explained that while Group I remains dominant on the continent, there is a gradual shift toward Group II lubes. “Africa's lubricant market relies heavily on imported Group I basestocks, with a gradual shift toward higher-performance Group II and multigrades driven by industrial and automotive demand, and rising interest in fuel-efficient lubricants is boosting demand for Group II and multigrades.” However, Siva noted that even though the age of the car park in Africa is young, a shift towards higher-grade lubes will be engendered as OEMs start assembling cars in several countries across the African continent. “In some cases, the age of the car park is very young. If you start to look at countries that import used cars, they import cars that are between five and seven years old. So by default, it is a young car park as time progresses,” said Konar.
Similarly, Ayodeji said that the “uptake of Group II and III basestocks is increasing, especially in automotive, as original equipment manufacturers’ (OEM) recommendations and awareness of durability benefits grow.”
