Cabinet nod to further liberalise lubricant market

The Cabinet nod has been granted to further liberalise the country’s lubricant industry by calling for a fresh licensing round to allow new players to enter the market.

Minister of Power and Energy Kanchana Wijesekera on Monday sought the approval of the Cabinet of Ministers to call for applications for the selection of new entrants to provide the opportunity to enter Sri Lanka’s lubricants market with high quality and innovative products.

The Department of Government Information said that the move would allow consumers to purchase lubricants at more competitive prices.

“The Ceylon Petroleum Corporation Act (No. 28 of 1961) and its accompanying amended provisions have empowered the Minister in-charge of Petroleum Resources Development to select new applicants for entry into the lubricant industry and to grant licenses accordingly. 

Consequently, the minister of Petroleum Resources Development has fully opened the country’s lubricants oil market,” it noted.

At present, 26 licensed companies including Ceylon Petroleum Corporation are engaged in the lubricant industry in the country. As of second quarter of 2022, Chevron Lubricants Lanka PLC had a 45.64 percent market share followed by 26.79 percent and 5.58 percent market shares held by  Lanka IOC and McLarens Lubricants.