Impact of Middle East Conflict: Engine Oil Prices Rise

The impact of the conflict involving the United States, Israel, and Iran is affecting more than just fuel prices; the cost of lubricants and engine oils is also being observed to rise. Dustin, the owner of Garage +62, noted a price hike in his workshop, stating that Shell AX7 Scooter 10W 40, which was priced at Rp 80,000 during the Eid period, has since begun to climb. Kiki, owner of the Maski Garage motorcycle workshop in Cinere, Depok, confirmed that several engine oil brands have started increasing their product prices by approximately 5 to 10 per cent compared to previous rates. Yuswidjajanto, an industry source, explained that both fuel and lubricant additives are experiencing price surges, with surcharges reaching around 30 per cent. Given that additives contribute roughly 70 per cent to the composition of lubricants, he noted that manufacturers must raise prices by at least 21 per cent to avoid losses. He added that all petroleum derivatives are inevitably facing price hikes because as crude oil supply becomes constrained while demand remains steady, prices naturally ascend.