| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Volume (2025) | 196.87 Million liters |
| Market Volume (2030) | 218.64 Million liters |
| CAGR | 2.12 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Pakistan Lubricants Market Analysis
The Pakistan Lubricants Market size is estimated at 196.87 million liters in 2025, and is expected to reach 218.64 million liters by 2030, at a CAGR of 2.12% during the forecast period (2025-2030).
Pakistan's industrial landscape has undergone significant transformation in recent years, with the power generation sector emerging as a key growth driver. The country's total installed power generation capacity witnessed remarkable growth, increasing by 11.5% year-over-year to reach 41,577 MW as of July 2022. This expansion has been accompanied by a strategic shift towards diversifying the energy mix, with particular emphasis on renewable sources. The government's Alternate Renewable Energy (ARE) policy aims to derive 20-30% of all energy from renewable sources by 2030, demonstrating a clear commitment to sustainable development. This transformation has created new opportunities across various industrial sectors, particularly in manufacturing and energy-intensive industries, where industrial lubricants play a crucial role in maintaining machinery efficiency.
The food and beverage industry has emerged as a crucial component of Pakistan's manufacturing sector, accounting for approximately 27% of the value-added products produced in the country. With over 2,500 food processing units primarily focused on the primary processing of fruits, vegetables, sugar, flour, pulses, and grains, the sector demonstrates robust growth potential. The industry's expansion is particularly noteworthy in the Punjab, Sindh, and Khyber Pakhtunkhwa regions, which host approximately 90% of food processing companies. This growth has been supported by government initiatives to promote value addition and modernization of processing facilities, where oils and lubricants are essential for operational efficiency.
The renewable energy sector in Pakistan is witnessing unprecedented development, particularly in wind energy projects. As of 2022, the country has successfully commissioned 750 MW of wind-powered electricity, bringing the total installed capacity to 1,985 MW. The government's commitment to renewable energy is further evidenced by the implementation of 24 operational private wind projects, with an additional 12 projects under construction. These developments align with Pakistan's broader energy diversification strategy and create substantial opportunities for industrial growth and technological advancement, necessitating the use of industrial oils and lubricants to ensure the reliability of energy infrastructure.
The textile industry, despite facing challenges, remains a significant contributor to Pakistan's industrial sector, with exports accounting for 61% of total exports during the fiscal year 2021. However, the sector faces structural challenges, including energy supply constraints, with nearly 80% of industrial operations experiencing complete shutdowns due to persistent electricity supply issues. The industry's competitiveness is further challenged by energy costs that are 2.4% higher than in India and 7.8% higher than in Bangladesh. To address these challenges, the government is focusing on expanding power distribution networks and improving the ease of doing business to attract foreign investments and enhance industrial productivity, where machinery lubricants can play a pivotal role in reducing operational costs.
Pakistan Lubricants Market Trends
Positive Outlook for the Automotive Industry
Pakistan's automotive industry demonstrates strong growth potential, contributing significantly to the country's economic development. The industry accounts for approximately 4% of Pakistan's GDP and employs over 1.8 million people across 3,200 automotive manufacturing plants. According to the International Organization of Motor Vehicle Manufacturers (OICA), Pakistan recorded sales of 227,392 new vehicles in 2022, marking a substantial 21.1% increase from 2019 levels. This growth trajectory is expected to continue, with industry projections suggesting annual vehicle sales could reach 350,000 units as economic indicators improve over the next two years.
The government's progressive policies and initiatives are further strengthening the automotive sector's outlook. The National Electric Vehicles Policy (NEVP) has set ambitious targets, aiming to achieve 30% electric vehicle penetration in passenger cars and heavy-duty trucks by 2030, increasing to 90% by 2040. Even more aggressive targets have been established for two-wheelers, three-wheelers, and buses, with 50% new sales targeted by 2030. The automotive manufacturing landscape is also evolving, with new entrants like Peugeot officially launching operations in Pakistan through its partnership with Lucky Motor Corporation, establishing eight 3S dealerships across six cities. These developments are driving increased demand for automotive lubricants, particularly engine oils, which are essential for maintaining vehicle performance, extending engine life, and reducing emissions.
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Increasing Chinese Investments in the Country
Chinese investments in Pakistan's industrial sector, particularly in lubricants and automotive manufacturing, are creating substantial growth opportunities. A significant development is the entry of Hengmei Technological Grease Company, an affiliate of state-owned energy giant Sinopec, into Gwadar Free Zone Phase II. The company's establishment of a lubricant blending plant marks a new chapter in Pakistan's lubrication manufacturing industry. This investment is particularly noteworthy as Hengmei specializes in developing and producing greases for upstream petroleum exploration, production, and refining, bringing advanced technology and expertise to the Pakistani market.
The automotive manufacturing sector has also benefited significantly from Chinese investments and partnerships. Changan Motors, a prominent Chinese automaker, has partnered with Master Motors Ltd to establish a manufacturing plant in Pakistan, making the country the only nation outside China producing the latest model of the Changan Oshan X7. Additionally, Chinese companies have expressed interest in investing approximately USD 15 billion in Pakistan's petrochemicals sector, including plans for an energy pipeline from Gwadar to China. These investments are complemented by collaborative projects in agricultural machinery modernization, as exemplified by the partnership between Tianjin Modern Vocational Technology College and MNS-University of Agriculture Multan, which aims to contribute to Pakistan's agricultural machinery modernization efforts.
Segment Analysis: Product Type
Engine Oil Segment in Pakistan Lubricants Market
The engine oil segment dominates the Pakistan lubricants market, commanding approximately 61% of the total market share in 2024. This segment's prominence is primarily driven by the widespread use of mineral oil-based engine oils, which are readily available and cost-effective compared to synthetic alternatives. The segment's growth is further supported by the increasing vehicle population equipped with older engines that have higher engine oil capacity, leading to more frequent oil changes and higher consumption patterns. Additionally, the segment benefits from the expanding automotive sector in Pakistan, with rising vehicle production and sales creating sustained demand for automotive lubricants across both commercial and passenger vehicle segments.
Remaining Segments in Product Type
The Pakistan lubricants market encompasses several other significant product segments that serve diverse industrial and automotive applications. Transmission fluid and hydraulic fluid represent the second-largest segment, serving critical functions in various mechanical systems. Grease products play a vital role in industrial machinery and automotive applications, while gear oils are essential for automotive and industrial gear systems. General industrial oils cater to specialized industrial applications, including turbines, compressors, and manufacturing equipment. Other product types, including process oils, marine oils, and specialty lubricants, serve niche applications across various industries, contributing to the overall market diversity and functionality of the lubricants industry in Pakistan.
Segment Analysis: End-User Industry
Automotive and Transportation Segment in Pakistan Lubricants Market
The Automotive and Transportation segment dominates the Pakistan lubricants market, holding approximately 62% of the market share in 2024. This significant market position is driven by Pakistan's well-established automotive industry, which contributes around 3% to the country's GDP and employs approximately 1.8 million people. The segment's dominance is further strengthened by the government's Auto Industry Development and Exports Policy (AIDEP) 2021-26, which offers various support schemes and tax incentives to promote domestic automotive production. The demand for lubricants in this segment is primarily driven by the increasing vehicle production, with passenger car manufacturing showing substantial growth. Additionally, the presence of major global OEMs and their assembly plants in the country, coupled with the government's focus on localizing production, continues to boost the demand for automotive lubricants.
Power Generation Segment in Pakistan Lubricants Market
The Power Generation segment is emerging as the fastest-growing segment in the Pakistan lubricants market, with a projected growth rate of approximately 6% during 2024-2029. This remarkable growth is primarily driven by the country's expanding power generation capacity and increasing focus on renewable energy sources. The government's commitment to the Indicative Generation Capacity Expansion Plan (IGCEP) 2021-30, which emphasizes pursuing renewable and nuclear energy projects, is creating substantial opportunities for lubricant manufacturers. The plan's ambitious target to add 13,148 MW of hydropower capacity at the national level by 2030 is expected to significantly boost the demand for specialized lubricants used in power generation equipment. Furthermore, the development of wind energy projects, with 24 private wind projects currently operational and 12 under construction, is creating additional demand for high-performance lubricants used in wind turbines and related equipment.
Remaining Segments in End-User Industry
The Heavy Equipment, Food and Beverage, and Other End-user Industries segments collectively play a vital role in shaping the Pakistan lubricants market. The Heavy Equipment segment serves crucial sectors like construction, agriculture, and mining, with the construction industry receiving an additional boost from infrastructure development projects under the China-Pakistan Economic Corridor. The Food and Beverage segment, despite its smaller share, maintains steady demand due to Pakistan's position as the second-largest industry in the country's manufacturing sector. Other end-user industries, including textiles, chemicals, and general manufacturing, contribute to the market through their diverse lubricant requirements for various industrial applications and machinery maintenance needs.
Pakistan Lubricants Industry Overview
Top Companies in Pakistan Lubricants Market
The Pakistan lubricants market is characterized by a mix of global oil majors and domestic players demonstrating strong market presence through strategic initiatives. Companies are focusing on expanding their distribution networks through partnerships and collaborations with local distributors to enhance market penetration and reach. Product innovation remains a key focus area, with manufacturers developing specialty lubricants for specific applications and introducing premium synthetic lubricants to meet evolving customer demands. Operational agility is demonstrated through investments in supply chain optimization and the establishment of local blending facilities. Strategic moves include strengthening relationships with OEMs through technical partnerships and expanding service station networks. Companies are also emphasizing sustainability and developing eco-friendly lubricant solutions while investing in digital technologies for improved customer engagement and service delivery.
Global Players Dominate Partially Consolidated Market
The Pakistan lubricants market exhibits partial consolidation with global oil majors like Shell, Chevron, and ExxonMobil holding significant market positions alongside domestic players such as Pakistan State Oil and Hi-Tech Lubricants. These multinational corporations leverage their extensive research capabilities, advanced technology, and global expertise to maintain competitive advantages in the market. The presence of state-owned enterprises and local players adds a dynamic element to the competitive landscape, with domestic companies capitalizing on their understanding of local market conditions and established distribution networks.
The market is witnessing active collaboration and partnership activities rather than outright acquisitions, as evidenced by agreements between international brands and local distributors. Companies are focusing on strengthening their market presence through strategic alliances, distribution agreements, and joint ventures rather than pursuing aggressive M&A strategies. This approach allows both global and local players to combine their strengths while maintaining operational flexibility and market responsiveness, creating a balanced competitive environment that promotes both stability and innovation.
Innovation and Distribution Key to Success
Success in the Pakistan lubricants market increasingly depends on companies' ability to develop specialized products for specific industries while maintaining strong distribution networks. Market players must focus on building long-term relationships with key industrial customers, particularly in the automotive lubricants and power generation sectors, while simultaneously expanding their retail presence through service stations and authorized distributors. The development of premium products, investment in research and development, and the ability to provide technical support services are becoming crucial differentiators in the market.
Companies looking to gain market share must address the challenges of high customer loyalty to established brands and the importance of OEM approvals. The market shows relatively low substitution risk due to the specialized nature of industrial lubricants products and their critical role in equipment performance. However, regulatory changes regarding environmental standards and the growing focus on sustainable practices may impact product formulations and manufacturing processes. Success will increasingly depend on companies' ability to adapt to these evolving requirements while maintaining cost competitiveness and service quality. Building strong relationships with key stakeholders, including OEMs, distributors, and end-users, remains crucial for both market leaders and challengers.
Pakistan Lubricants Market Leaders
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Chevron Corporation
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Pakistan State Oil
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Exxon Mobil Corporation
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Shell
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Hi-Tech Lubricants Limited
- *Disclaimer: Major Players sorted in no particular order
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Pakistan Lubricants Market News
- July 2022: Shell Pakistan appointed Burque Corporation, which has planned to expand the distribution of its lubricants in Quetta. With the collaboration, Shell Pakistan covered 6,000 outlets in villages and 40,000 additional outlets across Pakistan.
- March 2022: Chevron Pakistan Lubricants (Private) Limited collaborated with MG JW Automobile Pakistan (Private) Limited to supply its synthetic lubricants. Through this collaboration, the company will be providing its Delo and Havoline branded products for commercial, industrial, marine, and passenger vehicle applications.
Pakistan Lubricants Industry Segmentation
A lubricant is a substance that helps to reduce friction between surfaces in mutual contact, which ultimately reduces the heat generated when the surfaces move. It may also transmit forces, transport foreign particles, or heat or cool the surfaces.
Pakistan's Lubricants market is segmented by product type and end-user industry. By product type, the market is segmented into engine oil, transmission and hydraulic fluid, general industrial oil, gear oils, grease, and other product types (process oil and turbine oil). By end-user industry, the market is segmented into power generation, automotive and transportation, heavy equipment, food and beverage, and other end-user industries (construction and food and beverage industry).
For each segment, the market sizing and forecasts have been done based on volume (liters).
| Product Type | Engine Oil |
| Transmission and Hydraulic Fluid | |
| General Industrial Oil | |
| Gear Oils | |
| Grease | |
| Other Product Types (Process Oil and Turbine Oil) | |
| End-user Industry | Power Generation |
| Automotive and Transportation | |
| Heavy Equipment | |
| Food and Beverage | |
| Other End-user Industries (Construction and Food and Beverage Industry) |
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Pakistan Lubricants Market Research FAQs
How big is the Pakistan Lubricants Market?
The Pakistan Lubricants Market size is expected to reach 196.87 million liters in 2025 and grow at a CAGR of 2.12% to reach 218.64 million liters by 2030.
What is the current Pakistan Lubricants Market size?
In 2025, the Pakistan Lubricants Market size is expected to reach 196.87 million liters.
Who are the key players in Pakistan Lubricants Market?
Chevron Corporation, Pakistan State Oil, Exxon Mobil Corporation, Shell and Hi-Tech Lubricants Limited are the major companies operating in the Pakistan Lubricants Market.
What years does this Pakistan Lubricants Market cover, and what was the market size in 2024?
In 2024, the Pakistan Lubricants Market size was estimated at 192.70 million liters. The report covers the Pakistan Lubricants Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Pakistan Lubricants Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Pakistan Lubricants Market Research
Mordor Intelligence delivers a comprehensive analysis of the lubricants industry in Pakistan. The coverage spans from engine oil to industrial lubricants. Our extensive research includes oils and lubricants across various sectors, such as automotive lubricants, transmission fluid, and hydraulic fluid applications. The report provides detailed insights into industrial grease segments, compressor oil markets, and machinery lubricants. This offers stakeholders a complete understanding of both synthetic lubricants and conventional products.
This detailed market analysis is available as an easy-to-download report PDF. It examines crucial segments, including marine lubricants, aviation lubricants, and mining lubricants. The study also covers specialty lubricants, metalworking fluid, refrigeration oil, and construction lubricants, providing valuable insights for industry participants. Our research methodology ensures comprehensive coverage of gear oil markets and emerging trends in industrial oils and lubricants. This enables stakeholders to make informed decisions based on robust data and expert analysis of the Pakistan lubes industry.
