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Lube Attraction

Aug 05, 2010 (LBO) - The Sri Lankan government has decided to further open up the lubricant market by allowing more suppliers with the aim of increasing competition and reducing prices, a spokesman said.
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Lubricant sale and production is a regulated industry in Sri Lanka.
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The local lubricant market was opened up in January 2007.

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Media spokesman media minister Kehaliya Rambukkwelle said some of the licenses of the 14 existing suppliers expire by the end of the year.



"The Cabinet of ministers has approved a proposal by the Petroleum Ministry to increase the number of suppliers," he told a news conference.


"New suppliers who have shown interest will be given licenses and those of existing suppliers will be extended for another five years.

"This will widen the market, create more competition and prices could be brought down further.

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Chevron unit, Chevron Lubricants Lanka, formerly known as Caltex, currently dominates the island lubricants market which is seen growing with the end of the 30-year ethnic war in May 2009.

Other firms like Lanka IOC, the local unit of Indian Oil, have been making inroads into the market with a recovery in demand expected from Sri Lanka former war-t

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