K.Venkateshwar.Rao

Lubricant demand volumes in Sri Lanka shrank 0.3 percent in 2018, while the sales value of those products rose 3.1 percent, according to a market report released recently by the industry’s regulator, the Public Utilities Commission of Sri Lanka. The country consumed 57,794 metric tons of finished lubes valued at 27.3 million Sri Lankan rupees (U.S. $152,000) last year, compared to 57,990 tons and Rs 26.5 million in 2017. Chevron Ceylon Ltd. remained the market leader, but its share of sales declined 2.5 percent to 21,571 tons, or 37 percent of demand. Its nearest competitor again was  Lanka IOC  – local subsidiary of  Indian Oil Corp. Ltd.  – whose share swelled 0.5 percent to 10,176 tons, or 17.6 percent.  Laugfs Holdings Ltd.  was third at 5,193 tons for 9 percent, up from 7.7 percent in 2017. Automotive lubricants accounted for 74 percent of demand, and sales of that category rose 1 percent during 2018. Industrial lubricants constituted 16 perce...

BY K. VENKATESHWAR RAO The Sri Lankan government invited lubricant suppliers this month to apply for the new permits that it plans to issue for producing and selling products on the island nation. Existing players, continued to oppose the plan, complaining that the market is not large enough to support any new competition. Thirteen companies are currently authorized to sell finished lubes in Sri Lanka. In 2017, the country consumed 58,000 metric tons of finished lubes valued at Rs 26.5 Billion (U.S. $16 million). The Petroleum Ministry’s request for qualifications is part of a plan to create healthy competition for supply of quality lubricants. The government requires companies that blend or sell lubricants within the country to have a license. The government has not stated the number of new licenses that will be granted. Companies applying for them must have at least five years of experience in the lubricant business. A minimum investment of $5 million i...