The improper disposal of used oil poses a significant threat to society and the environment. The present study adds value to the existing knowledge base by identifying and analysing the critical barriers to reverse logistics of used oil obtained from the automobile service stations in the developing economies context. An interpretive structural modelling methodology was applied for establishing the interrelationship between the identified barriers and to rank the barriers based on their driving power. The results of the study revealed that a barrier namely ‘inadequate government policies, organisational policies, and lack of top management commitment’ was the most significant. Findings of this study are intended to guide the decision and policy makers in understanding the reverse logistics barrier analysis so that the most significant barriers can be eliminated for the effective reverse logistics and enhancing the performance of the automotive oil manufacturing companies.