Not Only Fuel, the US-Israel-Iran War Triggers the Threat of Rising Lubricant Prices in the Country

JAKARTA - The conflict between the United States, Israel, and Iran, which is now at war, has a major impact on many sectors, including the lubricant industry in the country, as revealed by Motul representatives.

Managing Director of PT Motul Indonesia Energy (MIE), Welmart Purba, revealed that the supply of lubricants which are still mostly imported from outside Indonesia can result in the rise in the price of the lubricant itself.

"If production in this context is lubricants, it is additives, base oil, we actually import," said Welmart, when met at a joint fast-breaking event in the Jakarta area, Tuesday, March 3.

He gave an overview that the government had given a signal that they would raise the price of fuel (fuel), which of course would have a direct impact.

The bad impact of this war on the lubricant market in Indonesia is believed to not occur directly. According to him, this impact will be felt when entering the second or third week phase.

Not without reason, because Iran has closed the Strait of Hormuz which is an important passage for imported goods from various parts of the world. The strait is 20-30 percent of the world's oil supply.

"If it is closed, of course the supply of vital materials needed by the lubricant must use other routes that are quite far away and have a fairly high cost," he explained.

"Many of our raw materials are imported. We import base oil, additives are also imported. This means that if the supply is disrupted, the logistics route will be further away and automatically the price will rise," he added.

So the war that heated up this week has a very significant impact on many sectors, including the automotive sector from the lubricant industry side.