UK Imposes Provisional Anti-Dumping Duties on Engine Oils and Hydraulic Fluids: GOV.UK

Key Highlights

• SN150 Base Oil Prices: ₹68/kg in Delhi, ₹61.5/litre in Kandla.
• Bhiwadi Lubricants: Prices range from ₹87/litre (Hydraulic Oil 68) to ₹135/litre (Broaching Oil).
• UK Trade Measures: Anti-dumping duties (11.6%–59.4%) on Lithuanian & UAE oil imports.
• Industry Impact: UK domestic producers expected to benefit by up to £55M due to reduced import pressure.

Oil and Lubricant Prices in India

• In the lubricants and industrial oils market, Base Oil (SN150) is priced at ₹68 per kg in Delhi and ₹61.5 per litre in Kandla, reflecting regional pricing differences. 
• In Bhiwadi, various hydraulic oils are available, with Hydraulic Oil 68 priced at ₹87/litre, HLP46 at ₹95/litre, and Anti-Wear Hydraulic Oil 68 at ₹96/litre. Gear Oil 150 is quoted at ₹115/litre, while Rust Preventive Oil (Water Displacing Type - WDM) stands at ₹122/litre. 
• Among cutting oils, Soluble Cutting Oil is at ₹112/litre and Neat Cutting Oil at ₹115/litre. Quenching Oil 32 is priced at ₹134/litre, and Broaching Oil is the highest among the listed oils, at ₹135/litre. 

Demand and Supply: Import Pressures Shake UK Lubricant Market

• As per gov.uk, The UK engine oils and hydraulic fluids market has been facing significant challenges over the past year. Domestic producers have been struggling with an oversupply situation, primarily driven by cheaper imports from Lithuania and the UAE. These imports, priced significantly lower than local products, undercut the prices of UK-made goods by an average of 37%, causing financial strain on domestic manufacturers.
• Demand for engine oils and hydraulic fluids remains stable, fueled by consistent automotive and industrial activity, including both consumer vehicle maintenance and heavy-duty commercial transport sectors. However, the imbalance created by aggressive import pricing led to suppressed margins for local producers. Domestic companies found it difficult to compete, especially when imported goods flooded the market at prices deemed unsustainable in a healthy competitive environment.
• This dynamic was exacerbated by the fact that imported oils often offered comparable quality, giving end-users little incentive to prefer domestically produced alternatives purely based on performance. Consequently, local production was forced either to lower prices to unsustainable levels or to risk losing market share, leading to material injury across the sector.

Government Action: Anti-Dumping Duties Imposed

• The UK Government, through the Department for Business and Trade, has now taken decisive action based on the recommendation of the Trade Remedies Authority (TRA). Effective from 16 April 2025, provisional anti-dumping duties have been imposed on engine oil and hydraulic fluid imports from Lithuania and the UAE.
• These provisional duties range between 11.60% to 24.95% for individual companies that participated in the investigation, and broader countrywide rates of 49.59% for Lithuania and 59.40% for the UAE. The decision follows the TRA’s investigation, initiated in June 2024, which revealed substantial evidence that dumped imports caused serious injury to the UK’s engine oil and hydraulic fluid industries.
• The scope of the investigation covers a broad range of products, including passenger car motor oils, heavy-duty commercial vehicle oils, and hydraulic oils. The provisional measures will be in place for up to six months while the TRA completes its full investigation. This action is expected to provide a financial benefit of £5 million to £55 million to domestic producers, depending on how companies are able to adjust their pricing strategies.
• These measures aim to temporarily level the playing field, allowing UK manufacturers, such as Aztec Oils Ltd. (the applicant behind the investigation), to regain competitiveness and potentially recover from the market injury sustained over the past year.

Expert Opinion: Price Stability and Recovery for Domestic Players

The imposition of duties is expected to stabilize the domestic market by curbing the influx of cheap imports. UK producers may regain some pricing power, and a slight firming of domestic prices could follow. Buyers may witness moderate price increases as suppliers adjust to a rebalanced market landscape.