More Lube

Sept 14, 2007 (LBO) – The Sri Lanka has given approval for three more companies to sell lubricants in the island, raising to nine the number of companies in the market which is dominated by the US brand Caltex. Sri Lanka's annual lube market is around 45,000 kilolitres. The new companies to enter the fray will be local firm Laugfs Holdings, Japan's Toyota Tsusho Corporation and Waxpol Industries of India, information minister Anura Yapa said.

Lubricant sale and production is a regulated industry in Sri Lanka. The local lubricant market was opened up in January this year with five companies being given approval to import, export and sell lubricants in Sri Lanka.

They were Bharat Petroleum (India), Gulf Oil International, Motul (France), Total S.A. (France) and Sinopec (China).

A sixth firm, Lanka Indian Oil Corporation (LIOC), which is already retailing petroleum fuels and its Servo brand lubes, was granted approval to blend, produce and market lubricants in the island.

The local lube market is dominated by Caltex Lubricants Lanka with around 72 percent market share while LIOC holds over ten percent of the market.

The balance eight percent is split between Mobil, Valvoline, Shell and BP