Russia's automotive lubricant prices surge amid oil and supply chain pressures

Russia is facing higher costs for a wide range of goods, with automotive lubricants set to become more expensive from early April. The price hikes stem from rising oil costs and ongoing supply chain issues. Other petrochemical products, including raw materials for antifreeze and car chemicals, are also seeing increases. The upcoming price rise follows months of instability in global oil markets. While crude and base oil prices generally declined or stabilised over the past year, recent logistical disruptions and stock shortages have pushed costs upward. In mid-March 2024, heating oil in Germany was about 37.77€ more expensive per 100 litres than in earlier periods, though long-term trends showed a slight drop—down 6.4% from late February due to expected supply growth from Non-OPEC producers.

The conflict in the Middle East has further strained supply chains, particularly for motor oil additives. Despite these pressures, analysts do not expect a sharp spike in additive prices. Instead, base motor oils and additives in Russia could rise by 5–15%, reflecting broader market adjustments. Russia's largest oil companies are aligning their prices with global fluctuations. At the same time, the country is focusing on developing a fully domestic production chain for base oils and additives. This move is seen as essential for achieving technological independence in the sector.

The price increases will take effect in early April, affecting drivers and manufacturers alike. While global oil trends have shown some stabilisation, local logistical challenges and geopolitical tensions continue to drive costs higher. The push for domestic production aims to reduce reliance on imports in the long term.