20 Jun 2026
The American Petroleum Institute (API) has extended its Emergency Provisional Licensing (EPL) programme by an additional 90 days, providing continued regulatory flexibility to engine oil manufacturers affected by the ongoing shortage of Group III base oils in North America. The extension pushes the temporary relief through September 2026.
The American Petroleum Institute (API) has extended its Emergency Provisional Licensing (EPL) programme by an additional 90 days, providing continued regulatory flexibility to engine oil manufacturers affected by the ongoing shortage of Group III base oils in North America. The extension pushes the temporary relief through September 2026.
The announcement was made by Bill O'Ryan, Director of API's Engine Oil Licensing and Certification System (EOLCS) and Diesel Exhaust Fluid (DEF) programmes, during the ASTM D02 committee meeting held in Chicago, Illinois.
API originally introduced the EPL programme on 26 March 2026 after determining that supply disruptions originating in the Middle East met the force majeure criteria outlined in Section 6.9 of API 1509, the standard governing the Engine Oil Licensing and Certification System. While the initial relief was granted for up to 90 days, API had indicated that the programme could be extended if market conditions failed to improve. The latest decision confirms that the supply challenges remain unresolved.
The shortage has been driven by missile and drone attacks on critical energy infrastructure across the Middle East, reducing production at major Group III base oil facilities operated by ADNOC, Bapco Energies, and Shell's Pearl Gas-to-Liquids (GTL) complex in Qatar. Shipping disruptions through the Strait of Hormuz have further tightened supply, leaving many lubricant manufacturers struggling to source approved base stocks required for licensed engine oil formulations.
The extension follows a request from the Independent Lubricant Manufacturers Association (ILMA), which earlier urged API to invoke the force majeure provisions within API 1509. Under Section 6.9, individual EOLCS licensees may apply for temporary provisional licences that allow them to substitute base oils or make limited formulation adjustments while maintaining compliance with API licensing requirements during supply disruptions.
API emphasized that the relief is not automatically granted to all licensees. Each company must submit an individual EPL application, detailing how the supply shortage affects its licensed formulations before receiving provisional approval. According to O'Ryan, approximately a dozen companies have applied for the programme to date.
This is not the first time API has implemented emergency licensing measures. A similar provisional licensing programme was introduced during the COVID-19 pandemic in 2020 to help lubricant manufacturers address disruptions in additive and base oil supply chains.
The latest extension was formally announced during the API liaison report to ASTM D02.B, the ASTM subcommittee responsible for automotive lubricants.
The detailed article is published by https://ilma.org/ can be accessed from https://ilma.org/api-grants-ilmas-request-for-emergency-provisional-licensing/
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