API Extends Emergency Engine-Oil Licensing as Base-Oil Supply Disruptions Persist

Another 90-day extension keeps extraordinary formulation flexibility in place as Middle East disruptions continue to strain global base-oil supply.

The American Petroleum Institute has extended Emergency Provisional Licensing for ILSAC and API engine-oil service categories for another 90 days.

In an October 1 notice distributed to API Engine Oil Licensing and Certification System licensees, the API Lubricants Committee and other interested parties, API said the ongoing conflict in the Middle East has disrupted supply from multiple base-oil refineries in the region. API characterized the resulting situation as “severe global base oil supply shortages” that continue to meet the requirements for Emergency Provisional Licensing under Section 6.9 of API 1509.

The latest action extends Emergency Provisional Licensing for an additional 90-day term effective October 1.

The extension is noteworthy because API 1509 reserves Emergency Provisional Licensing for significant industry-wide disruptions and states that relief under the provision will rarely be granted.

API 1509 defines a qualifying disruption as a significant, industry-wide limitation in the supply of a base oil or additive that makes it impossible for multiple licensees to market sufficient quantities of engine oil without violating API licensing requirements. The provision places the burden on the licensee to demonstrate that exigent circumstances justify its use.

API first activated EPL in March after determining that Middle East-related base-oil supply conditions met the force majeure threshold under Section 6.9. The Independent Lubricant Manufacturers Association had requested that API take the action.

API then extended the program for another 90 days in June, carrying the relief into September. The October 1 notice adds another 90-day period.

Taken together, the extensions show that the emergency licensing mechanism first activated in March remains in place more than six months later.

What Emergency Provisional Licensing Allows

Emergency Provisional Licensing does not give engine-oil marketers blanket authority to substitute whatever base oil or component may be available.

Under API’s October 1 notice, a licensee applying for EPL must provide technical information supporting, to API’s satisfaction, the use of substitute base oils or other components that have become unavailable because of force majeure declarations. The notice also says licensees may cite and attach the API letter as evidence describing the events that created the need for emergency licensing.

A licensee seeking relief must complete an EPL Agreement and submit it to API.

API 1509 states that an Emergency Provisional License is intended to remain in place only until the licensee obtains alternative supplies, completes additional API requirements, or the disruption ends, whichever occurs first.

Once the 90-day term has elapsed or API closes Emergency Provisional Licensing, API says the licensee must either revert to the originally licensed formulation or obtain a license for a new formulation, which may include the EPL substitution, provided all required testing has been successfully completed.

How Widely Is EPL Being Used?

What remains unclear is the extent to which engine-oil marketers are actually using the emergency provision.

The October 1 notice does not disclose how many companies have applied for Emergency Provisional Licenses, how many applications have been approved, how many formulations are involved, or what types of substitutions are being made.

That distinction is important.

The extension confirms that API continues to consider the supply disruption sufficient to meet the requirements for Emergency Provisional Licensing. It does not necessarily mean that large numbers of finished engine oils are currently being manufactured under Emergency Provisional Licenses.

Depending on the formulation and available materials, licensees may be able to rely on existing approved sources or applicable base-oil interchange and viscosity-grade read-across provisions rather than seek EPL.

API 1509 governs the voluntary Engine Oil Licensing and Certification System, under which marketers license and display API engine-oil quality marks. The current API 1509 is the 24th Edition, issued in July 2026 and amended September 23.

Another Measure of a Market Still Under Strain

The significance of the latest extension may therefore extend beyond the number of Emergency Provisional Licenses actually being issued.

More than six months after EPL was first activated, API continues to maintain an emergency mechanism reserved for significant industry-wide supply disruptions. Its October 1 notice again points to disruptions at multiple Middle East base-oil refineries and describes the resulting shortages as severe.

For lubricant marketers, the extension preserves an important option when normally approved base oils or other components cannot be obtained.

For the broader lubricant market, it is another indication that the effects of the Middle East supply disruption are still working through the engine-oil supply chain.