Motor Oil

Introduction

Motor oil was just a mixture of base oil and additives used to lubricate engine parts, reduce
friction, clean, cool, and protect the engine.

However, modern synthetic motor oil is a complex mixture of base oils and additive components
designed to perform a variety of tasks.

Motor oil base oils can be composed of:

1. Petroleum (aka Dinosaur oil)

2. Chemically synthesized materials (synthetic)
3. Combination of synthetics and petroleum (called semi-synthetic or synthetic blend).
Functions:
 Separating and lubricating moving parts
 Reducing engine wear
 Helping to prevent deposits from forming on internal engine components
 Removing and suspending dirt and contaminants in the oil until these
contaminants can be removed at the next oil change
 Cooling engine parts
 Enhancing engine fuel efficiency
 Providing protection across a wide range of temperatures
 Operating hydraulics in variable valve timing
 Helping protect the emissions system

The main characteristics in motor oil are viscosity and additives.

Viscosity is a measure of an oil's resistance to flow. It decreases (thins) with increasing

temperature and increases (or thickens) with decreased temperature. These conditions explain
why an oil will flow much more easily in summer at a temperature of 25 degrees C (78 degrees
F), than it will flow in winter at minus 25 degrees C (minus 13 degrees F).

SAE viscosity grades

The Society of Automotive Engineers (SAE) has developed several viscosity classifications or
grades, such as 5W-30, 10W-40 and 15W-50. These viscosity grades designate the specific
ranges in which the particular oil falls. The “W” indicates it is suitable for use in cold temperatures.
(Think of the “W” as meaning “Winter.”) The classifications increase numerically; the lower the
number, the lower the temperature at which the oil can be used for safe and effective engine
protection. Higher numbers reflect better protection for high-heat and high-load situations.

Engine oil is comprised of two basic components-base oils and additives. The base oils constitute
70-90 percent of the total and are created from natural gas or crude oil, while additives round out
the remaining 10-30 percent and can be variety of things.

These additives include:        

 Dispersants
 Detergents
 Anti-wear additives
 Friction modifiers
 Antioxidants
 Anti-foam additives
 Corrosion inhibitors
 Viscosity index improvers
 Pour point depressants

Types of motor oils:

There are four general motor oil types:

 Full synthetic motor oil

 Synthetic blend motor oil
 Conventional motor oil
 High mileage motor oil

Motor Oil in the Egyptian market:

The volume of Egypt's consumption of oils in the field of industry, cars, transportation and

other activities amounts to about 500-700 thousand tons annually.

Among the foreign companies are Mobil companies; It is the first with a market share of
about 22%, followed by Shell and Total with a share of 16% for each, followed by Caltex with
a share of 6%, and with regard to local companies, Taawon Company holds 23% of the
market and Egypt Petroleum has 19%, confirming that his company acquires about 1% of the
market now; The future plan aims to reach about 6% of the market in 2020.

Car engine oil distributors confirmed that the rate of consumer demand for local products has
increased by between 15 and 20%, due to the decrease in their prices by 30% compared to
their imported counterparts, which have seen successive increases during the last period.

KEY PLAYERS:

The largest players in the market from foreign companies are Mobil companies; It is
the first with a market share of about 22%, followed by Shell and Total with a share of 16%
for each, followed by Caltex with a share of 6%, and with regard to local companies, Taawon
Company holds 23% of the market and Egypt Petroleum has 19%, confirming that his
company acquires about 1% of the market now; The future plan aims to reach about 6% of
the market in 2020.

Market share

19%
22%
Mobil
Shell
Total
Caltex
Taawon
16% Egypt Pet.
23%

6% 16%
Car Engine oil prices:
Total oil prices
3,000km "Oil 20w50" capacity (4 liters): 165 EGP.
5,000 km (quartz-20w50): 310 EGP
10,000 km category «5w30-5w40» 705 EGP

Shell oil prices

1000 km (4 liters) 169 EGP
3,000km at 185 EGP
5,000 km at 320 EGP
10,000 km, class "w40" - capacity (4 liters) at 705 EGP.
10,000 km class "w30" at 720 EGP

Mobil oil price list

3,000 km - a packaged (4 liters) at 340 EGP
5,000 km - category “Super XHP” at 355 EGP

Taawon Oils
3,000 km - a packaged (4 liters) at 170 EGP
5,000 km category at 510 EGP

Castrol Oils
10,000 km EDGE (4 liters) 750 EGP
PROFICAR in EGYPT:

Few points came to our knowledge about PROFI-CAR as their second shipment is
coming in, here’s some of them:

1- It is ran as a family business (which requires a restructure)

2- They are not looking for distributors, only retailers (with promotions and
bonuses)
3- They only focus on the Engine oils, ignoring the service oil and car care
products, which can lead to a bigger segment and bigger contracts with
big retailers.
4- They are hiring an Ex-Shell sales executive.
5- They should look for joint venture in the car industry (i.e: fit&fix)
6- Online presence does not target A+ category (social media) as the engine
oil is premium
7- No presence online on e-commerce platform (wide range of products
which can easily gain credibility with car care products which is easier to
penetrate than engine oil market)
References:

- https://www.pennzoil.com/en_us/education/know-your-oil/what-is-motor-oil.html

- https://synthetic-oildepot.com/a-beginners-guide-to-motor-oil-what-you-need-to-
know/

- https://almalnews.com/%D9%82%D8%A7%D8%A6%D9%85%D8%A9-
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