Mar 18, 2014 (LBO) – Sri Lanka’s lubricant market is estimated to have stagnated or contracted further in 2013, on top of a decline in 2012, Chevron’s unit in the island said while cautioning against state attempts to expand trade freedoms of the people.
The firm spoke out against state moves to relax a licensing regime and help consumers by improving their trade freedoms.
“While all big global and regional lubricant players have a presence in the Sri Lankan market, with 13 players operating in a market that is relatively small with a potential of 55 mn litres per annum, the Ministry of Petroleum Industries has initiated action to award further licences to new entrants to the lubricants industry,” Gomes said.
“While more competition may be good for the consumer it becomes imperative to bring about the right regulations and put in place a legal framework to ensure sanity in the market for fair play and to safeguard the consumers.”
Sri Lanka’s lubricants market was at one time an absolute state monopoly, and for several years after the lube business was spun off from state-run Ceylon Petroleum Corporation it continued as a private monopoly.
The industry was opened up in stages, allowing incumbents to co