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Group III base oil shortage threatens automotive lubricant supply
The global automotive industry is facing a supply chain crisis due to a shortage of Group III base oils, which are essential for producing high-quality, low-viscosity engine lubricants. Prices for these base oils have nearly tripled in Europe and the United States, reaching approximately 4,000 dollars per ton.
The shortage is largely attributed to disruptions in the Middle East, specifically following damage to the Pearl GTL gas-to-liquids plant in Qatar, operated by Shell and QatarEnergy. Shell has indicated that repairs to one of the facility's two production lines could take up to a year.
Major automakers, including Stellantis, Volkswagen, and Toyota, are responding by seeking alternative suppliers and developing new lubricant formulations that meet strict industry standards. While manufacturers have used existing stockpiles to mitigate the impact, these reserves are being depleted, raising concerns about increased service costs and potential availability issues for consumers.
Entities
Pearl GTL · Shell · Stellantis · Toyota · Volkswagen
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] A production line at the Pearl GTL complex in Qatar was damaged and repairs may take up to one year. www.motorionline.com
- [○ 1 SOURCE] Alternative suppliers have limited volumes, making the sector vulnerable to further supply shocks. www.motorionline.com
- [DISPUTED] Group III base oil prices in Europe and the US have reached approximately 4,000 dollars per ton. www.motorionline.com · www.autoblog.it
- [DISPUTED] In Europe, Group III oil prices rose from approximately 1,260 euros per ton in late February to 3,270 euros in June.
- [● 3 SOURCES] Stellantis is analyzing reformulated lubricants and securing alternative products to meet industry standards. www.motorionline.com · www.autoblog.it