RE-OILING THE WHEELS: NAVIGATING INDIA'S USED OIL LANDSCAPE UNDER THE EXTENDED PRODUCER RESPONSIBILITY

India, as the world’s third-largest lubricant market, faces a significant challenge in the sustainable management of used oil generated from its expanding automotive and industrial sectors.

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India's Path to Sustainable Used Oil Management

With lubricant demand expected to rise from 2.8 million tons to nearly 4 million tons by 2030, the country annually generates approximately 1,325 kilotons (kT) of used oil. Alarmingly, only about 15% of this vast quantity is collected for re-refining, while the remaining portion is either burned or illegally dumped, causing severe environmental harm. Addressing this issue is crucial, and adopting innovative reverse logistics models could enhance used oil management while benefiting other waste management sectors.

The Importance of Proper Used Oil Management

Proper management of used oil is essential to prevent pollution of air, soil, and water. Improper disposal, such as burning, releases harmful substances like sulfur dioxide and nitrogen dioxide, which contribute to respiratory diseases. Economically, low re-refining rates translate to missed opportunities in reducing reliance on imported virgin base oil. Re-refining used oil is significantly more energy-efficient than producing base oils from crude, requiring only one-third of the energy. Recycling 500 kT of used oil annually could prevent approximately 1 million tons of CO2 emissions and save over Rs.5,000 crores in crude oil imports. A circular economy approach is, therefore, vital to closing the loop in the lubricant supply chain, minimizing waste, and maximizing resource efficiency.

Current Challenges in Used Oil Collection and Recycling