Hyundai Oilbank Strengthens Marketing of Premium Petroleum Products

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[Asia Economy Reporter Hwang Yoon-joo] Despite negative refining margins and a decline in oil demand, Hyundai Oilbank is strengthening its marketing in the premium petroleum products market.

Hyundai Oilbank will launch 11 types of the Hyundai Xteer Ultra series, eco-friendly gasoline engine lubricants that meet the latest API and ILSAC standards, for the first time in Korea on May 1.

API and ILSAC are international standards for automotive lubricants set by the American Petroleum Institute and the International Lubricant Standardization and Approval Committee, respectively. Both organizations are scheduled to announce new API SP and ILSAC GF-6 standards on June 1, which significantly enhance eco-friendly functions such as improved fuel combustion, engine wear prevention, and cleaning effects compared to previous standards.

Hyundai Oilbank's strategy is to upgrade and launch existing products in line with the strengthened international standards to secure the related market. The new products reduce engine friction by an average of about 25% compared to existing products, improving vehicle fuel efficiency and preventing engine oil leakage issues that commonly occur in aging vehicles.

A Hyundai Oilbank official stated, "We will focus on developing products that reduce four pollutants: fine dust, fuel consumption, greenhouse gases, and exhaust emissions," adding, "We plan to actively target not only the domestic market but also strategic regions such as Europe, the Americas, and the Middle East."

Earlier, Hyundai Oilbank renewed and launched its premium gasoline brand 'KAZEN.' The name KAZEN combines 'Kaiser,' meaning 'emperor,' and 'Zenith,' meaning 'the highest,' symbolizing the goal of achieving 'the highest quality' in the premium gasoline sector.

According to Korea National Oil Corporation and others, domestic premium gasoline consumption increased from 880,000 barrels in 2016 to 1.35 million barrels last year, growing at an average annual rate of 15.5%. In contrast, regular gasoline consumption rose from 78.05 million barrels to 81.48 million barrels during the same period, with an average annual growth rate of only 1.4%. Particularly, premium gasoline demand is rapidly increasing due to a rise in imported car purchases among younger generations and sustained low oil prices.

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