Synthetic motor oil prices rise due to supply disruptions

The cost of synthetic motor oil is rising due to complex manufacturing requirements, specialized additive packages, and strict technical standards for modern high-performance and turbocharged engines. Synthetic oils offer superior performance, such as better flow during cold starts and stability at high temperatures, compared to traditional oils.

Supply chain disruptions in the Middle East have significantly impacted the availability of Group III base oils. In Europe and the United States, prices for these essential components have surged to nearly $4,000 per ton, representing a threefold increase from previous levels. This volatility is forcing major automotive manufacturers, including Volkswagen, Stellantis, and Toyota, to respond to the changing economic landscape.