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19th Apr 2013
Dramatic growth in industrial output in Asia combined with changes in automotive engine designs to comply with tightening environmental regulations has led to an increase in the supply of Group II and III base oils. Specifically in the USA, government lead innovations are requiring an increase in corporate average fuel economy for gasoline engines by over 50% from 2011 to 2016 and in the EU, a decreased carbon dioxide emission by over 25% for new cars is set. During the period from 2008 to 2012, demand change by viscosity grade has also led to a shift from Group I to Group II/III even though the demand for base oils in general is globally stagnating.