Sri Lanka IOC unit erodes Chevron dominance in lube market
ECONOMYNEXT – Indian Oil Corporation’s Sri Lanka subsidiary has gained market share from the dominant Chevron unit and state-owned Ceylon Petroleum Corporation in the lubricant market, a new study by the regulator shows.
The Public Utilities Commission of Sri Lanka (PUCSL) said in its lubricant market report 2015 that competition was increasing in island’s lubricant industry.
Sri Lanka’s lube market grew at 6.8 percent to 23.4 billion rupees in 2015, with 10.1 percent growth in automotive lube and 7.7 percent increase in industrial lube, the report said.
Currently, 13 operators compete in Sri Lanka’s lubricant market and are authorized to import, export and sell lubricants, with only three authorized to blend lubricants.
Chevron Ceylon’s lubricant market share narrowed to 47.58 percent in 2015 from 49.30% in 2014 with its nearest competitor, Lanka Indian Oil Corporation seizing 14.86 percent of market share, up from 12.59 percent in 2014, the report said.
The PUCSL said the market share of Ceylon Petroleum Corporation also decreased to 9.19 percent in 2015 from 10.54 percent in 2014.
(COLOMBO, Sept 29, 2016)