ILMA Seeks Emergency Relief from GM Dexos Program
ILMA has expanded its response to the ongoing global Group III base oil supply crisis, formally requesting emergency relief for lubricant manufacturers participating in the Dexos engine oil licensing program administered by General Motors.
The request follows ILMA’s recent appeal to the American Petroleum Institute for force majeure relief under API licensing requirements as lubricant manufacturers struggle to maintain approved formulations amid severe supply disruptions.
In a March 16 letter to GM officials, ILMA warned that military conflict in the Persian Gulf region has severely disrupted global Group III base oil production and shipping. Damage to major Group III production facilities has significantly constrained supplies. At the same time, shipping through the Strait of Hormuz has been effectively halted, cutting off a major artery for global base oil trade.
The Middle East accounts for a significant portion of the United States’ Group III base oil supply, leaving many lubricant manufacturers unable to procure sufficient volumes to maintain licensed formulations.
ILMA asked GM to provide temporary flexibility for Dexos licensees directly affected by the disruptions. The Association’s request includes expedited review of temporary base oil substitutions, extensions for required testing and certification deadlines, and suspension of enforcement actions tied to compliance issues caused by supply shortages.
The Association also asked GM to establish streamlined communication channels for licensees navigating the crisis and to consider public messaging acknowledging temporary flexibility within the Dexos licensing program.
“This is an extraordinary situation that lubricant manufacturers simply cannot control,” said Holly Alfano, ILMA’s CEO. “Our members remain fully committed to maintaining the performance and quality standards required by both API and GM. The temporary relief we’re requesting would allow companies to continue supplying the market while navigating a supply disruption of unprecedented scale.”
ILMA emphasized that the requested measures are intended solely as temporary accommodations tied to the current force majeure conditions and are not meant to weaken the performance standards underpinning the Dexos program.
The Association said it will continue working with industry partners, regulators and licensing bodies to minimize market disruptions and help lubricant manufacturers maintain supply during the crisis.
