Base oil is a crucial ingredient in producing lubricants, encompassing both automotive and industrial oils. Acting as the foundation, it imparts essential properties like viscosity, lubricity, and stability across diverse applications. The base oil industry is growing due to the increasing demand for high-performance lubricants in the automotive and industrial sectors. As vehicles and machinery evolve, there's a heightened demand for lubricants that ensure better protection, efficiency, and longevity. This trend is driving the need for higher-grade base oils, especially Groups II and III.

Another significant factor is the rising preference for synthetic and bio-based base oils. This shift is largely driven by environmental regulations targeting carbon emission reductions and a broader push for sustainability. Synthetic oils perform well in extreme conditions, making them suitable for high-performance applications.

Moreover, base oils are finding applications in emerging sectors like electric vehicles (EVs) and renewable energy. EVs, for instance, require specialized lubricants for components such as bearings and cooling systems, creating new opportunities in the market. This move towards sustainable energy and transportation further increases the demand for innovative base oil solutions.