More than Rs. 20 bln lubricants sold in 2012
A total of 56334 kilolitres (KL) of lubricants worth Rs. 20.85 billion were sold in 2012 out of which 69 per cent of total sales were automotive products while industrial, marine and greases accounted for 18 per cent, 6 per cent and 4 per cent respectively, a public utilities commission of Sri Lanka report on the lubricant industry has said.
A kilolitre is a metric unit of volume equal is 1,000 litres.
"The market leader held a share of 55 per cent (reduced from 57 per cent in 2011) and the nearest competitor has got a market share of 11 per cent. The market share of remaining participants has increased to 34 per cent (from 32 per cent in 2011). This is a result of several parties who entered the market upon full liberalization in 2006, consolidating their positions in the market," the report explained.
A total of 22,070 kilotres (KL) of finished lubricants and greases worth of Rs. 4,834 million were imported during 2012; automotive, industrial, marine and greases segments account for 60 per cent, 4 per cent and 11 per cent of the total import, respectively, according to the report.
It said that base oils and additives for blending worth of Rs. 4,839 million were im-
A total of 22,070 kilotres (KL) of finished lubricants and greases worth of Rs. 4,834 million were imported during 2012; automotive, industrial, marine and greases segments account for 60 per cent, 4 per cent and 11 per cent of the total import, respectively, according to the report.
ported by the two parties authorized to blend and produce lubricants and greases.
During the year 3,020 kilolitre of lubricants were exported to regional markets. "This is a 42 per cent decrease with respect to year 2011. Whereas there was a 63 per cent increase in 2011 with respect to year 2010," the report added.
It said that during 2012, around 65 per cent (36,779 KL) of the lubricant requirement was produced (blended) locally. "Around 87 per cent was produced at Kolonnawa while the balance was carried out at the lube blending plant belonging to IOC located at China Bay. Local blending is done, mainly to gain the advantage from the prevailing import tariff differential between raw materials and finished lubricants."
The mandatory minimum quality standards for imported and blended lubricants and greases stipulated by the government have been based on standards published by international organizations such as American Petroleum Institute (API), Japanese Automobile Standards Organization (JASO), etc. "Recently, Sri Lanka Standards Institute (SLSI) has published Sri Lanka standards for Gasoline Engine Lubricating Oil, Diesel Engine Lubricating Oil, Automotive Gear Oil, Four Stroke Motorcycle and general purpose Greases and these are used as the currently applicable minimum standards. Sri Lankan Standards may be obtained from SLSI,” the report said.
The Government receives income from the authorized parties by way of a bi-annual fixed and in some cases a variable registration fee, which is equivalent to Rs. 1 million or 0.5 per cent of total invoiced sales for that period, whichever is higher, subject to a maximum of five million rupees." In 2012 the total attributed registration fee to the government is Rs. 61.22 million," the report said.