Supply issues in low-viscosity oils could have significant implications for engine and transmission maintenance cycles.
The‘ other’ oil crisis
Supply issues in low-viscosity oils could have significant implications for engine and transmission maintenance cycles.
Diesel and petrol prices remain high but are stabilising after the price shocks earlier this year, driven by issues in the Persian Gulf and the Strait of Hormuz. In the automotive aftermarket, the real oil crisis isn ' t about 95 unleaded or diesel; it ' s about lubricants.
Base oil is the majority ingredient for lubricants and grease products. Automotive maintenance technicians know that lubricants matter, but with modern engine design prioritising increasingly tight tolerances and high temperatures, lubricants are more important than ever.
Lubricant formulation experts have noted that inventory drawdowns have offset the impact of supply disruptions in high-quality base oils in the second quarter of 2026. But the margin for that continued drawdown is now ending.
Nearly a quarter of global crude oil is sourced in the Persian Gulf. What many automotive industry professionals might not realise is that almost half of all Group 3 base oils( the most crucial ingredient in lubrication products) come from the region. This is why the conflict and supply chain disruption have had a much greater effect on motor oils than fuel prices.
The unintended effect that makes the base oil crisis worse than the loss of fuel shipments from the Persian Gulf is the refining reaction. To compensate for refinery damage and logistical challenges in the Persian Gulf, many global refineries that were once constant base-oil producers have now switched to producing aviation fuel.
Lubrication deviation
Base oil prices have more than doubled since March this year, and the consequences are massive for lube blenders and automotive OEMs.
High-compression turbocharged engines are widely standardised across the automotive industry and require specific lubrication products. There is almost no margin for technical substitutions, regarding engine or drivetrain lubrication. Powertrain engineers under enormous pressure to increase engine efficiency are pushing the limits of lubrication and friction tolerances while using ' lighter ' lubrication oils.
For dealerships and aftermarket service specialists, it ' s a huge issue. If certain grades of engine lubrication become unavailable, is there a technical margin for the substitution? Customers can ' t park vehicles that require routine fluid replacements for weeks, waiting for the appropriate grade of engine or lubrication oil products to become available.
But if OEMs approve substitution lubricants to ensure a continuity of servicing, how does that affect future warranty coverage and claims? With the automotive industry setting record warranty and recall numbers last year, the issue of warranty coverage and OEM accountability has become a major challenge.
Future warranty claims could be at risk if OEMs approve the use of substitute engine oil grades to maintain continuity of maintenance during the current base oils crisis.
WORDS IN ACTION 42 JULY | AUGUST 2026