The Group III shortage is creating conditions that could place added pressure on compliance, sourcing, and quality-control practices throughout portions of the lubricant supply chain. Here is what every buyer and seller needs to know.

By Thomas F. Glenn | JobbersWorld

Over the past two months, the lubricant industry’s attention has focused primarily on tightening Group III availability, rising finished lubricant prices, and concerns about potential shortages of synthetic motor oil. At the same time, questions are growing about how well modern engine oil specifications and licensing systems can function during a prolonged supply disruption.

Why Group III Matters

Modern passenger car motor oils — particularly low-viscosity grades such as SAE 0W-20, 0W-16, and increasingly 0W-8 — depend heavily on high-performance Group III base oils. These base stocks provide the volatility control, oxidation resistance, cold-temperature performance, and fuel-economy characteristics necessary to meet demanding modern lubricant specifications such as GM dexos™ and current API and ILSAC standards.

Global Group III production capacity remains highly concentrated, with significant volumes originating from South Korea, the Middle East, and a limited number of other regions. Middle East sources supplied more than 40 percent of total U.S. Group III imports in 2025, a share that climbed to approximately 55 percent by January 2026. Disruptions in the Middle East have contributed to significant tightening in Group III availability.

This tightening of supply is doing more than driving up prices — it is increasing pressure on portions of the industry to maintain compliance with today’s tightly engineered lubricant specifications.

Heightened Vigilance During Supply Stress

In response to these pressures, the American Petroleum Institute (API) has activated its Emergency Provisional Licensing (EPL) provisions under API 1509 to help licensed marketers manage temporary base oil substitutions due to force majeure conditions. While this provides a structured pathway for maintaining compliance, it underscores the need for extra care across the supply chain. Distributors and commercial buyers may wish to conduct additional due diligence and verification with suppliers during periods of heightened market stress.

Motor Oil Due Diligence Checklist

(General marketplace guidance only. This is not exhaustive and does not replace professional technical or legal review.)

Click checklist to enlarge

1. Is this product currently API licensed? Request the license number and verify it at api.org/eolcs.
2. Does this product hold active OEM approvals or applicable licensing credentials?
3. Can you provide the current Product Data Sheet (PDS) and Safety Data Sheet (SDS)?
4. Has this formulation changed recently? If so, was it retested and does the new formulation maintain the required API and/or OEM approvals?
5. Can you provide documentation supporting any “suitable for use” claims?

Important: Always obtain written documentation for the supplier’s responses. Verbal assurances are not sufficient during periods of supply stress.

Given the current Group III supply disruptions and the possibility of formulation adjustments across portions of the market, buyers may wish to consider enhanced quality-control procedures for critical PCMO purchases. This may include retaining reference samples from approved batches along with corresponding Product Data Sheets (PDS) and Certificates of Analysis (COA), periodically testing incoming deliveries through independent laboratories, and comparing results against benchmark specifications such as kinematic viscosity, HTHS viscosity, NOACK volatility, and key additive elements.

Where clear documentation or verification is unavailable, buyers may wish to conduct additional due diligence before purchase.

What Consumers Can Do to Protect Themselves

(General guidance only. Click checklist to enlarge.)

Click checklist to enlarge

Most motorists are not lubricant experts. Consumers should:

• Purchase motor oil from trusted retailers, installers, and distributors.
• Exercise caution with unknown sellers and online marketplaces, especially those with unclear or questionable sourcing.
• Confirm that the lubricant meets the viscosity grade and specifications recommended by the vehicle manufacturer.
• Where applicable, look for current API certification marks or other licensing credentials.
• Ask questions if unfamiliar brands or substitute products are recommended.
• Review service invoices carefully to confirm the SAE viscosity grade and specifications listed.
• Retain receipts and service records for future reference.

For most consumers, the safest approach during periods of market disruption is to purchase from established suppliers with transparent documentation and proven marketplace reputations.

The Industry Has a Reputation to Protect

The lubricant industry has spent decades building consumer confidence around licensing systems, OEM approvals, quality standards, and brand trust. Protecting that reputation matters now more than ever.

The Industry’s Response Will Matter

Ultimately, marketplace integrity depends on a simple principle: every invoice, every product label, and every specification claim should accurately reflect the product actually being delivered to the consumer.

Sources

Sources include publicly available industry reports, OEM service communications, NIST Handbook 130, API materials, and prior JobbersWorld reporting.

NIST Handbook 130 Reference:
Uniform Laws and Regulations in the Areas of Legal Metrology and Engine Fuel Quality