Base Oil demand in India grew at a CAGR of 4-5% during 2015-2019 and is anticipated to achieve significant growth rate through 2030. Growing automotive and industrial sector in the country has led to increased demand for Base Oils and lubricants. Base Oil demand is expected to increase with India adopting to BS VI emission norms from BS IV causing several hardware changes to be introduced in the OEMs to cater to the new emission standards. More than 60 percent of the Base Oil demand in India is satisfied through imports from Middle East and the U.S. and domestic market is expected to attract investments from global players like Repsol, Shell and Exxon over the coming years. Globally, Base Oil is an oversupplied market with the capacity far exceeding the demand however India still lags in its manufacturing facilities. There is an urge in the lubricant sector to replace the current lubricants with new formulations that would reduce emissions .Hence, India is anticipated to witness an increasing demand for Base Oil owing to increasing preference for automobiles complying with BS IV emission norms.With significant trade, Group I plant closures, a shift to better performing heavy group Base Oils, addition of new plant capacities and technological advancements taking place in MEA manufacturing units, India’s Base Oil demand is expected to show a significant rise over the next five years.
’Make in India’ scheme implemented by the Government of India which is an initiative to foster the growth of indigenous manufacturing sectors in the country is also expected to provide a positive impetus to the Base Oil domestic manufacturers. Moreover, implementation of GST, which has improved the ease of doing business in the country will catalyse the domestic production of Base Oil. Higher preference for heavy-grade Base Oils than their lighter counterparts for better properties tends to fuel the Grade III and Grade IV demand in future. Additionally, demand from the industrial machinery and equipment application also drives India’s overall Base Oil market.
Years Considered for this Report:
Historical Years: 2015 – 2019
Base Year: 2020
Estimated Year: 2021
Forecast Period: 2022 – 2030
Objective of the Study:

  • The primary objective of the study was to evaluate and forecast Base Oil capacity, production, demand, inventory, and demand – supply gap in India.
  • To categorize Base Oil demand based on end use, grade, region and sales channel.
  • To study trade dynamics and company share in India Base Oil market.
  • To identify major customers of Base Oil in India.
  • To evaluate and forecast Base Oil pricing by grade in India Base Oil market.
  • To identify and profile major companies operating in India Base Oil market.
  • To identify major news, deals and expansion plans in India Base Oil market.


Report Scope:
In this report, India Base Oil market has been segmented into following categories, in addition to the industry trends which has also been detailed below.
Market, by End Use Automotive, Industrial Application, Others
Market, by Grade Base I, Base II, Base III, Base IV, Base V
Market, by Distribution Channel Direct/Institutional Sales, Retail Sales, Other Channel Sales
Market, by Region North, West, East and South

Major players operating in India Base Oil market include IOCL, BPCL, HPCL, Chennai Petroleum Corporation Limited etc. In FY20, UAE’s ADNOC signed a sales agreement with IOCL for Group III Base Oil sales in India taking into consideration the growth in Major players operating in India Base Oil market include IOCL, BPCL, HPCL, Chennai Petroleum Corporation Limited etc. In FY20, UAE’s ADNOC signed a sales agreement with IOCL for Group III Base Oil sales in India taking into consideration the growth in demand of finished lubricants market of India.
Base Oil prices were assessed at INR XXX per MT on bulk contract basis, yearly prices increased by about 16 per cent due to rise in product demand.
To extract data for India Base Oil market, primary research surveys were conducted with Base Oil manufacturers, suppliers, distributors, wholesalers and end users. While interviewing, the respondents were also inquired about their competitors. Through this technique, Chemanalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, Chemanalyst analyzed various end user segments and projected a positive outlook for India Base Oil market over the coming years.
Chemanalyst calculated Base Oil demand in India by analyzing the historical data and demand forecast was carried out considering crude oil prices. Chemanalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by Chemanalyst.

Key Target Audience:

  • Base Oil manufacturers, suppliers and other stakeholders
  • Organizations, forums and alliances related to Base Oil distribution
  • Government bodies such as regulating authorities and policy makers
  • Market research and consulting firms


The study is useful in providing answers to several critical questions that are important for industry stakeholders, such as Base Oil manufacturers, distributors and policy makers. The report also provides useful insights about which market segments should be targeted over the coming years to strategize investments and capitalize on growth opportunities.
Available Customizations:
With the given market data, Chemanalyst offers customizations according to a company’s specific needs.