The price of lubricant, which is also called "engine oil", has jumped over 70 per cent this year due to the scarcity of base oil in the global market.
Base oil is a major raw material for the production of lubricants. The price surge has caused a significant spike in the cost of maintaining and servicing engines in the country.
A 4-litre gallon of Mobil 5W30 (semi-synthetic), which was sold for an average of N9,000 at the beginning of the year, now sells between N15,000 and N16,000 while the full synthetic rose to an average of N32,000 from N20,000.
Data from the National Bureau of Statistics reveals that Nigeria imported lubricants worth N9.03 billion in the first half of the year, a 640% increase compared to N1.22 billion recorded in the same period of 2020.
Data tracked on the prices of lubricants from TotalEnergies shows that the price of a keg of Azolla zs68 rose by 72.2% from N18,000 as of the end of December 2020 to an average of N31,000 in September 2021.
Also, a Drum of Rubia HD 200, which sold for an average of N165,000 to N170,000 by December last year, now sells within N260,000 and N275,000 on average, indicating a price increase of over 60%.
Similarly, a keg of Golden Super SAE 40 P1, now sells for an average of N1,750 compared to an initial range of N900 and N1,000, representing an increase of at least 80%.
Crown H.Duty SAE 40 P4 currently sells for an average of N6,550, while Quatro HDX Maxima P25 sells for an average of N389,000 in Lagos State.
An analysis of the earnings generated by five of the listed oil and gas firms in the country shows a significant increase in the revenue generated from the sales of lubricant products and grease in the first half of the year.
Total Energies recorded a 62.38% increase in its lubricant revenue from N22.96 billion generated in H1 2020 to N37.29 billion in the period under review.
Similarly, Eterna Plc grew its lubricant revenue by a whopping 90.78% from N3.68 billion to N7.01 billion in H1 2021, while Ardova Plc posted a sum of N11.23 billion as revenue from the sales of lubricant products, indicating a 42.82% surge from N7.8 billion generated in the comparable period of 2020.
However, MRS Oil was the only company amongst the five companies under consideration, that posted a decline in lubricant revenue in the review period.