LAHORE: The lubricant market in Pakistan is no more an exclusive domain of the oil marketing companies as new players, without a network of fuel stations, are emerging with better products across the country, officials said.
Oil marketing companies have the advantage of a vast network of petrol pumps spreading all over the country, said Shaukat Hassan, chairman of Hi-Tech Lubricants – a local marketing company selling oil with the brand name of Zic.
Hassan said this is the reason that traditional mineral-based lubricants were marketed in the country and high quality lubricants remained out of reach for the consumers.
The Pakistan State Oil has the largest network of petrol pumps in the country and it is the largest seller of petrol and diesel in the country.
However, the company’s share in the local lubricants market is only 14 percent, while Shell enjoys a market share of 21 percent, other locals (15 percent), imported minus Zic (11 percent), Mal Pakistan Ltd (formerly Mobil Askari Lubricants Ltd) with 11 percent, smuggled (six percent), Zic (five percent), and Castrol (one percent).
Lubricants are used to improve the efficiency of vehicles and other industrial equipment.
Hassan said lubricants market is segmented into different sectors, mainly including automotive, industrial power and general industrial sectors. The automotive sector is further divided into consumers and original equipment manufacturers.
He said traditional mineral oil-based lubricants give the engine a shorter mileage, while the car could be run from 5,000-30,000km on synthetic lubricants.
“We introduced quality lubricants that protect engines longer,” he added. “Earlier, marketing without traditional outlets was difficult, but we now have a share of five percent in the Pakistani market.”
He said it is difficult to estimate the total size of the local lubricants market. However, the country imports around 275,000 tons of lubricants a year, while smuggled and locally refurbished lubricants also have substantial share.
Hi-Tech Lubricants imports lubricants from Korea. The company has completed formalities to get it listed at the local bourse.
“Listing process would be completed soon,” Hassan said.
He said the company is establishing a manufacturing facility in Lahore in collaboration with Korean principles. “The subscription raised from the sale of shares would be used to finance the project. Land for the factory has been purchased at Sunder Industrial Estate.”
Chairman Hi-Tech Lubricant said premium (long lasting) lubricants are mostly used by the original equipment manufacturers and owners of new cars.
“Synthetic lubricants used in these vehicles enhance the life of the engines besides improving the fuel consumption by six percent,” he said. “It is not advisable to use synthetic lubricants in older cars as the lubricants do not let any carbon deposit on rings and pistons.”
He said Zic’s share this segment, accounting for 20 percent of total market, is 24 percent.
The semi synthetic mineral-based oils hold a market share of 50 percent. This segment is mostly dominated by companies having their own petrol pumps.
The engine life would stay protected if engine oil is replaced at the short intervals of 1,000-1,500 km.
The third segment comprises of already used oil that is cleaned with chemicals. Its quality is doubtful and using this oil is risky for the engine life. None of the documented lubricant manufacturer or importer has any share in this segment. This lubricant may be termed as spurious.