The Ministry of Petroleum Industries has cancelled a decision to award licences to new entrants to the lubricants industry, amidst opposition by industry players, who say the market is already crowded, according to industry experts. “With 13 players operating along with all big global and regional lubricant players we are a relatively small market with [...]

The Sunday Times Sri Lanka

No more new licences tolubricant entrants

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The Ministry of Petroleum Industries has cancelled a decision to award licences to new entrants to the lubricants industry, amidst opposition by industry players, who say the market is already crowded, according to industry experts.

“With 13 players operating along with all big global and regional lubricant players we are a relatively small market with a potential of 55 million litres per annum and the Ministry isn’t keen to grant more licences,” an industry source told the Business Times. He said that the Public Utilities Commission of Sri Lanka (PUCSL) which operates as the shadow regulator was approached with some 30 licences for the lubricant business and while more competition may be good for the consumer it is crucial to create the correct regulations and put in place a legal framework to ensure sanity in the market for impartiality and to protect the consumers. He added that the necessity for an effective regulator is an urgent need of the hour from the perspective of all stakeholders.

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