PRODUCT DUMPING
The hidden cost of product dumping in the Mediterranean
Gianluca Cuomo, LUBON Lubrificanti e Chimici
For more than a year now, those of us working in the base oil distribution sector have witnessed a wave of unusually low-priced products, arriving from sources that seem to have appeared overnight. As a distributor of base oils and additives for both automotive and industrial lubricants, I’ve always believed in fair competition and transparent business practices. Yet what we are seeing today feels very far from that. Supply is variable and pricing is inconsistent with huge discounts between base oil grades that defy logic and commercial rationale This creates an enormous and unsustainable gap that cannot be explained by market volatility alone.
Competition in our industry is healthy and necessary, but when pricing begins to deviate so dramatically from European norms, it raises a troubling question, to borrow from Shakespeare, whether “something is rotten in the state of Denmark.”
A market under pressure
The impact of this alleged dumping is already being felt. My company, like many others, has seen a sharp reduction in distributed volumes,. Group I base oils are suffering the most, though even Group III has not escaped unscathed.
We have worked hard to explain the situation to our partners, suppliers, and customers, and we continue to defend our position with transparency. But contracts must still be honoured, and without clear legal recourse, such as a ruling or a precedent to appeal to, there is no possibility of invoking force majeure. The result is a slow erosion of business stability and confidence. If no decisive action is taken soon, the damage could become irreversible.
Complex blends and murky boundaries The Union of the European Lubricants Industry (UEIL) is currently advancing a case with the European Commission to address the issue of product dumping,
42 LUBE MAGAZINE NO.190 DECEMBER 2025
it is a necessary and courageous step toward protecting a vital European industry. However, the challenge we face is formidable. In my view, there exists a very fine line between identifying genuinely sanctioned oil products entering EU territory and detecting blends composed of multiple components. I strongly suspect the latter is at the heart of the problem. By blending questionable materials with legitimate base oils, perpetrators are able to disguise the true nature of their products, creating a grey zone that is extremely difficult to police.
A call for vigilance and enforcement I have confidence that the relevant authorities know how to pursue and prosecute cases of fraud. Yet enforcement must begin at the source. We have already seen several instances reported in the media where tankers carrying questionable cargoes have been detained or sanctioned by EU authorities. These interventions send a clear message and are, in my opinion, the most effective way to halt the problem before it reaches European markets.
Protecting the future of fair trade As distributors and manufacturers, our role is to maintain trust, in our products, in our supply chains, and in our partnerships. Product dumping undermines all of that. It damages honest businesses, distorts pricing, and jeopardises customer confidence.
With coordinated action from UEIL, the European Commission, and industry stakeholders alike — we can restore balance to the market. But we must stay vigilant. Transparency, accountability, and the enforcement of fair competition are not simply ideals; they are the foundation of a sustainable and credible lubricants industry.
lubon.it
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