Double Take

Sri Lanka is to double its license fees for lubricant operators and invite more players paving the way for state-run Ceylon Petroleum Corp. to also join the fray, Energy Minister M H M Fowzie said Monday. Sri Lanka is to double its license fees for lubricant operators and invite more players paving the way for state-run Ceylon Petroleum Corp. to also join the fray, Energy Minister M H M Fowzie said Monday. The license fee will now be fixed at Rs. 10 million for a five-year period and Rs. 2 million for a one-year timeframe, Fowzie said.

“We want to encourage more players to come into the market and also get Ceylon Petroleum to compete from next year,” the minister said.

The local lube market, estimated at about Rs. 6 billion, is dominated by ChevronTexaco (Caltex Lanka Lubricants Ltd), with the balance split between Lanka Indian Oil Corporation (LIOC), Exxon Mobil/Esso, Valvoline, Shell, and British Petroleum/Castrol

Caltex controls around 80 percent, with LIOC about 13 percent, according to industry estimates.

The lubricant market grew at around two percent last year, as against an average of five-percent, due to sluggish vehicle sales and lower usage of thermal power plants.

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