Lubricant producers assume cost of used oil collection in Spain

At a meeting held on March 15, the Board of Directors of SIGAUS decided to assume the brunt of the cost of used oil management in Spain, rather than passing these costs on to industrial oil consumers. This is due to a scenario of lower oil costs and falling demand for products with their origin in the treatment of this waste type. In 2016, SIGAUS will increase financing by an average of 59% for used oil collection, which is carried out by the management companies with whom the organisation has contracts. The objective is to continue guaranteeing free-of-charge collection and correct management of this hazardous waste.

SIGAUS is the Integrated Management System (IMS) charged with (on behalf of its member companies, producers and importers of industrial oils) the collection and management of used oils in Spain, in accordance with the provisions of current legislation (Royal Decree RD 679/2006 and Act 22/2011). The organisation has presented the results of a study carried out on collection costs in Spain by an independent consulting company (PwC). The study takes account of trends in international prices that affect the activity, such as those for oil and petroleum derived products, as well as information provided by the leading companies in the sector.

As a result of the study, waste managers have been informed of the new financing system, which will be implemented retroactively from January 1st 2016. The system represents an average increase in funding for used oil collection of 59%.

The new financing model is a progressive system based on the two variables with the most obvious effects on collection costs: the distance to the production point and the volume collected. It seeks to provide more funding in regions further from large urban centres, such as mountain areas and underprivileged areas, where collection involves higher costs but also prevents very significant environmental risks (the majority of Spain’s protected spaces and water resources are located in these areas).