Lubricant sales in Sri Lanka rose 11.4% or by 6,607 kiloliters (kL) to 64,585 kL last year, due to the influx of vehicle imports. This represents the second largest volume growth in a single year since 2010 when lubricant sales grew by almost 10,000 kL.
Sri Lanka’s lubricant market is estimated to be worth LKR26.1 billion (USD168 million), split among 16 companies, 13 of which only have permits to import, export, sell, supply and distribute lubricants while only three have lube blending facilities in the country.
Sri Lanka’s lubricant market was liberalised last year, which made the market more competitive.
More than 72% of lubricant sales were consumed by the automotive sector, with only 18% going to the industrial sector.
Chevron Lubricants Lanka, the market leader, has been steadily losing market share. The local unit of U.S.-based Chevron Corp. had a market share of 45.29% in 2016 from 47.58% in 2015 and 49.3% in 2014.
Although Chevron’s market share declined, the company’s sales volume continued to increase, from 27,585 kL in 2015 to 29,251 kL in 2016.
Meanwhile, Lanka Indian Oil Corp. PLC (LIOC), a unit of India’s state-owned Indian Oil Corp., saw its market share increase to 16.4% in 2016, from 14.9%in 2015. Ceylon Petroleum Corporation, the third largest lubricant company also saw its market share drop from 9.2% in 2016 to 8.4% in 2015.
Another Indian state-owned company, Bharat Petroleum Corp., and indigenous company Laugfs Lubricants were tied for fourth place, with each accounting for 11% of the market.