Synthetic Motor Oil Shortage Threatens Dealership Service Lanes and New-Vehicle Production

In the News | Ducker Carlisle | May 22, 2026

Automotive News reporter Dan Shine examines how the U.S.-Iran conflict has disrupted Group III base oil imports, the key ingredient in synthetic motor oil, creating supply pressure across dealership service lanes and new-vehicle production lines. Nissan and Toyota are already rationing supplies to dealerships while others are stockpiling inventory. The shortage is expected to last until at least mid-2027.

Nate Chenenko, who supplies dealerships with motor oil market data, is quoted throughout the piece. He warns that the shortage is going to hit service operations for cars coming through service lanes and flags that without synthetic motor oil and transmission fluid, automakers will not be able to draw new vehicles off assembly lines.

The article also covers how South Korea refiners, which supply around 35 percent of Group III base oils to the U.S., are struggling to source crude from the Middle East. Group II base oil, a conventional motor oil alternative, is running low at dealerships with as little as one to two weeks of inventory at some locations. Distributors are rationing supply, with some telling dealers they are out of stock entirely.

Nate notes the parallel to the COVID chip shortage: dealers can take in the car but cannot service it without oil and transmission fluid to put into it.

Read the full article on AutomotiveNews.com

Source: Automotive News | May 22, 2026 https://www.autonews.com/retail/service-and-parts/an-motor-oil-shortage-crisis-0522/