Due to the ongoing conflict, the global lubricant supply chain has seen a number of disruptions to their day-to-day operations. The Lubricant Expo Middle East team have reached out to our esteemed advisory board to get their take on the current situation and how best to manage it. We are very pleased to present an interview with Loutfi El Sayed the General Manager at Oscar Lubricants.
What challenges do the lubricant supply chain face in light of the current disruptions facing the Middle East?
The biggest issue right now is disruption of logistics flows. With instability in key routes like the Strait of Hormuz, we’ve seen port closures, vessel rerouting, and in some cases, shipping lines avoiding the region altogether. On top of that, freight costs have increased dramatically, sometimes 2 to 3 times, especially when using alternative routes through Saudi, Oman, or even Turkey. At the same time, raw material availability is becoming less predictable. Base oils and additives are directly linked to global crude dynamics, so any geopolitical tension immediately impacts supply, lead times, and pricing. In short: higher cost, lower visibility, and less reliability.
What advice would you give to the lubricant sector to help counteract these challenges?
First, stop relying on a single route or supply source. Flexibility is everything now, multiple ports, multiple logistics options, and strong relationships with forwarders. Second, rethink the export-heavy model. Companies should strengthen their local and regional presence, whether through distributors, toll blending, or local stock points. Third, move away from just-in-time thinking. In today’s environment, holding strategic stock is not inefficiency, it’s survival. And finally, be commercially transparent. Share the reality of freight and cost increases with customers instead of absorbing everything. The market understands the situation.
What can be learned from the current disruptions to help strengthen the lubricant supply chain in future?
We will likely see a shift toward regionalized supply chains, with more local blending, storage, and distribution hubs to reduce dependency on long-distance logistics. This is exactly the thinking behind our own investment in a liquid bulk terminal in JAFZA, to improve storage capacity, supply flexibility, and overall control of the supply chain. Projects like this are no longer optional; they are becoming essential infrastructure for the industry. At the end of the day, the companies that will come out stronger are the ones that adapt quickly, diversify their operations, and invest in long-term stability, not just short-term cost optimization.
