This paper addresses increasing concern about the pollution threat of used oil being illegally dumped and the impact of oil on air pollution and freshwater ecosystems in Asian countries. Used oil is a very serious waste management problem. These results call for management action such as maximising the collection and recovery of used oil. The Thai government recognizes the need to recycle used oil and has been active in encouraging programs to accomplish this goal. Thus unless new approaches and incentives are developed, used oil generation may become an increasing serious problem to our environment. The purpose of this study is to examine the technical and economic feasibility, of recycling used oils. In addition, this paper briefly discusses the problems to be overcome and outlines potential mechanisms for providing the necessary disposal controls in order to maximize the protection to public health and environmental quality from potential hazards posed by used lube oil disposal.