Apr 26, 2018 (LBO) – The Public Utilities Commission of Sri Lanka (PUCSL), shadow regulator of the lubricant industry held a public consultation session on the draft regulatory tools related to quality and price of lubricants, recently.
“The necessity of having an effective and independent mechanism for ensuring product quality, fair prices and protecting the interests of consumers and market players have arisen,” Damitha Kumarasinghe, Director General of the Public Utilities Commission of Sri Lanka said.
“That’s why PUCSL decided to hold a public consultation on issues related to same with a view to advising the Government on remedial measures.”
PUCSL proposed a mechanism to investigate and prosecute adulterate lubricants, guidelines for re-refining used lubricants and guidelines to be strictly followed by relevant agencies such as the Import and Export Control Department, Sri Lanka Customs and market participants with regard to the importation of unauthorized lubricants.
The Commission has has suggested to revise the duty structure taking into consideration the local value addition and investment by local blenders in addressing the price differences between the imported and locally produced lubricants.
Sri Lanka has 13 market players and 22 authorized lubricant brands.
The lubricant market comprises of lubricants and greases derived from mineral oil or synthesized from chemical compounds for automotive, industrial and marine applications.
It is regulated primarily under the Ceylon Petroleum Corporation Act No. 28 of 1961 by the Ministry of Petroleum Resources Development with the advice and assistance of the Public Utilities Commission of Sri Lanka.
Presently, the market is liberalized, but an authorization is required to import, export, blend, produce, distribute, supply or sell lubricants in the country.
More than 300 people participated in the consultation and public, industrialists, manufacturers, officials and experts expressed their views on the proposed mechanisms.