Sri Lanka’s lubricants market posts 6.8% growth in 2015

Sri Lanka’s lubricants market grew 6.8% last year, with the automotive segment leading the growth at 10.11% year-on-year, according to the Public Utilities Commission (PUC).

Sri Lanka’s lubricants market was estimated by the PUC at LKR 23.4 billion (USD156.4 million) in 2015. Thirteen companies are currently authorized to import, export, sell, supply and distribute lubricants, while only three are licensed to blend finished lubricants.

Chevron Sri Lanka retained the top spot, although its market share narrowed to 47.58% in 2015. Lanka IOC, the local affiliate of India’s state-owned oil company, Indian Oil Corporation Limited, had a 14.86% market share, from 12.59% in 2014. Meanwhile, Ceylon Petroleum Corporation’s market share declined from 10.54% in 2014 to 9.19% in 2015.

In 2015, 37,797.00 kilolitres of lubricants were blended locally, of which 75% was carried out at the Chevron blending plant, 20% at Lanka IOC’s and 5% at Laugfs Holdings Limited’s blending plant.

In the automotive segment, four-stroke motorcycle oils posted the highest growth year-on-year at 29%, driven by the steep rise in motorcycle imports. Engine oils for passenger cars (gasoline) grew by 14.8% year-on-year, while for commercial vehicles (diesel) growth lagged behind at 2.3%. Multi-grades accounted for almost all of the growth in the gasoline engine oil market segment, but actually declined by 11% in the diesel engine oil market segment.

The gear oil market grew by 12.5% year-on-year, automatic transmission fluid market by 2.8%

The industrial lubricant market grew by 7.7% year-on-year, while lubricating greases posted a 4.7% increase. The marine lubricant market segment, however, declined a hefty 37.7% year-on-year.