Finished lubricant sales in the UK rose sharply in January-March, hitting the highest level for a first quarter in four years. Base oil imports increased to meet the higher demand, offsetting a decline in domestic output.
Latest government data show finished lubricant demand in the UK increased by 32.4pc on the quarter and by 10.3pc on the year to 75,020t in the January-March period. January was the best performing month of the quarter, with sales reaching a nine-month high of 30,820t.
Base oil imports to the UK rose by 20pc on the quarter to 94,990t in the first three months of 2023, broadly in line with the same period last year. Imports from Belgium accounted for a third of the UK's first-quarter imports at 33,765t, up by 63pc from the previous quarter.
The rise in imports offset a drop in domestic production, which hit its lowest first-quarter level since 2016. The UK's base oil output waned by 11.7pc on the year to 54,140t, leaving it 45.3pc below the four-year average.
The growth in demand for finished lubricants coincides with a rise in passenger car registrations. New car sales in the UK rose by 18.4pc on the year to 494,260 units in January-March, according to data from the European Automobile Manufacturers' Association. Gasoline-fuelled cars made up 42.6pc of sales, followed by hybrid electric vehicles at 31.6pc.
