Sri Lanka’s lubricant market shrinks by almost half in 3Q22

• Lubricant market shrinks 47% to 9,489.83 kilo litres in 3Q23 amid economic crisis
• Overall automotive lubricants sales down 48 percent to 6,478.40 kilo litres
• Chevron Lubricant Lanka retains market leadership; but market share down slightly 
• Market share of CPC plummets to mere 0.36% from 4.73 percent a year ago

Sri Lanka’s lubricant market shrank by a drastic 47 percent Year-on-Year (YoY) to 9,489.83 kilo litres in the third quarter of last year amid economic crisis, fuel shortages, ban on vehicle imports and social unrest, the lubricant market data released by the Public Utilities Commission of Sri Lanka (PUCSL) showed.
In the quarter, overall sales volume of automotive lubricants reduced by around 48 percent YoY to 6,478.40 kilo litres where only the category of Diesel Engine Oils Multi Grade showed a slight growth of 9.28 percent YoY.
It resulted in the upgrade of SLS minimum requirements replacement of mono grade engine oils in the market by multigrade lubricants.
Sri Lanka’s lubricant market saw a short-lived recovery in the first quarter of last year before the country plunged deep into the economic crisis.
In 3Q22, Chevron Lubricant Lanka PLC (LLUB) was able to hold on to its market leadership with 46.75 percent in market share while recording 4,436.05 kilo litres in sale volumes, down from 47.32 percent market share and 8,459.80 kilo litres of sales recorded a year ago. 
Despite declining sale volumes, the company recorded 16 percent YoY growth in its topline and 43 percent YoY growth in its bottom line in the quarter, thanks to price increases.
Indian Oil Corporation (IOC) remained as the second largest player with 26.39 percent market share and recorded 2,504.38 litres in sales volumes compared to 20.10 percent market share and 3,594.15 kilo litres in sale volumes recorded a year ago.
ExxonMobil Asia Pacific Pte. Limited, ExxonMobil Asia Pacific Pte. Limited and Toyota Tsusho Corporation were the third, fourth and fifth largest players in the country’s lubricant market accounting for 6.71 percent, 5.45 percent and 3.22 percent market shares respectively.
Most notably, the market share of State-owned Ceylon Petroleum Corporation (CPC) plummeted to mere 0.36 percent in the quarter from 4.73 percent a year ago. 
In the quarter, new entrants such as Gulf Oil Middle East Limited and Lukoil Marine Lubricants DMCC continued to expand their market-share.
According to the PUCSL, which functions as the shadow regulator for the lubricant market, the number of players authorised to import, export, sell, supply or distribute lubricants and greases doubled to 22 from 11 during 2021, as the Energy Ministry issued licenses to new players under the third round of liberalisation of the country’s lubricants industry. 
The Ministry of Power and Energy secured the approval of the Cabinet of Ministers recently to call applications for the fourth round of liberalisation of the country’s lubricant industry.