The UK government has announced the imposition of provisional anti-dumping duties on imports of engine oils and hydraulic fluids originating from Lithuania and the United Arab Emirates (UAE). The decision, announced Wednesday, April 16, by the Secretary of State for Business and Trade, follows a recommendation from the Trade Remedies Authority (TRA) after a preliminary investigation found evidence of dumping causing injury to the domestic industry.

These temporary measures, effective for a period of up to six months, come as a result of the TRA’s initial findings in an investigation launched in June 2024. The probe was initiated following an application from UK-based manufacturer Aztec Oils Ltd., alleging that unfairly priced imports undercut domestic producers.

The TRA’s Provisional Affirmative Determination (PAD) revealed that UK producers were being undercut by an average of 37% compared to their own sales prices. This significant price difference was found to be causing material injury to the UK industry, impacting their profitability, market share, and overall viability. A PAD allows the government to implement temporary duties while a comprehensive investigation is conducted to determine the full extent and duration of the alleged dumping.

In its PAD, the TRA has recommended a range of provisional duty rates. Individual companies that participated in the investigation will face duties ranging from 11.60% to 24.95%, depending on their specific pricing practices. However, for all other companies exporting these products from the respective countries, country-wide duty rates have been set at a substantial 49.59% for Lithuania and an even higher 59.40% for the UAE. These significant country-wide rates suggest a broader concern regarding the pricing of these imports from both nations.

The investigation specifically covers a range of engine oils and hydraulic fluids, including passenger car motor oils, heavy-duty commercial vehicle oils, and various types of hydraulic oils. This broad scope indicates the potential impact of these imports across different sectors of the UK lubricants market.

The government anticipates that these provisional measures will provide a much-needed respite for UK producers. Estimates suggest that domestic manufacturers could benefit by between £5 million and £55 million during the period these duties are in place. The actual benefit will depend on the ability of UK companies to adjust their pricing strategies in response to the increased cost of imported goods. This financial boost could allow them to reinvest, innovate, and maintain a stronger presence in the domestic market.