UKLA President’s Report


In February at the Argus Base Oils Conference in London, I was struck at how fast the base oils market moves over quite a short period of time.


Over recent months we have seen variability in the supply of different base stock slates with both an easing and hardening of prices in response to strengthening demand at different times. The golden rule of lubricant demand is that it follows the activity of an economy, from the vehicles we drive to the industrial goods we consume.


Given demand outpacing supply as is currently the case, it can only be a matter of time when the market will return to an equilibrium making our ability to plan ahead that little bit easier.


During the early spring, negotiations with our European neighbours concerning the Northern Ireland protocol concluded.


UK Government is proposing a green channel for goods circulating freely between Great Britain and Northern Ireland without additional checks, and a red


UEIL President’s Report


In December 2019, a few months after its election, the European Parliament adopted the EU’s Green Deal, a framework aimed at making the EU climate neutral by 2050.


Among the many policy initiatives that have been launched within the framework, the most relevant for our industry are: - The Fit for 55 Package, which includes, among others, a provision requiring that from 2035 all new cars and vans registered in the EU would need to have zero emissions.


- The Ecodesign for Sustainable Products Regulation (ESPR), which not only will require manufacturers to assess the environmental impact of their products and design them to be more sustainable throughout their entire life but could also mandate specific and pervasive information and formulation requirements.


The fate of such initiatives will define the shape of our industry in the future.


Political pressure to finalise the regulations is increasing. The next European Parliament elections are scheduled to take place in 2024, and most likely, the EU Commission


4 LUBE MAGAZINE NO.174 APRIL 2023


channel for additional checks for goods entering Northern Ireland for onward travel to the Republic. It will always be contentious, subjecting part of the United Kingdom to regulations set elsewhere over which citizens of Northern Ireland do not have a vote.


I do hope common sense will prevail and we can settle upon mutually agreeable trading and regulatory arrangements that benefit all parties, especially those in Northern Ireland.


Lastly, Government proposals to tackle the cost of living in the United Kingdom include delaying the date of the first statutory vehicle test, or MOT, from 3 years to 4.


The UK has some of the safest and most congested roads in Europe, and we will oppose any proposal that risks the safety of our roads or the ability of our members to provide repair and maintenance services for the automotive market.


Andrew Goddard, UKLA President


will want to get there with some results in its pockets.


This past February, the proposal on zero-emissions vehicles was approved by the European Parliament but then failed to obtain ratification from the EU Council, because of a blocking


minority said to be composed of Bulgaria, Germany, Italy and Poland. Negotiations are ongoing and seem to be pointing at the possibility to keep allowing the use of internal combustion engines if green fuels are used.


li G


As for ESPR, the EU Commission has proposed to include lubricants in the priority sectors to be regulated. A public consultation is open and will close on 12 May. The finalisation of the regulation is planned for the end of the year.


UEIL, as part of the large industrial families of the chemicals, oil and manufacturing industries, needs to be an active part of the debate. For that, we need all the possible support and insight from the best minds in our great industry. You are all invited to engage with us. We need you all!


Mattia Adani, UEIL President


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