Cabinet nod for more lubricant players

Ramani KANGARAARACHCHI

Cabinet approval has been granted yesterday to allow various parties who have expressed interest to enter the lubricant market.

Therefore it has become necessary to initiate a third round of inviting requests for qualifications. Accordingly the Public Utilities Commission will initiate a third round of inviting requests for qualifications to extend authorization of existing parties by another five years at the end of their Agreements. Speaking to Daily News Business Chevron Lubricants Managing Director Kishu Gomes said all multinational players are already in the market and there will not be any big players left to enter the market. “New players will bring finished products and as a result the economic value will be reduced,” he said. He said the local market is small with only 55 million litres for all players and the market just started to grow in a conducive environment.

Gomes said extending the five year period for the existing players is sensible.

Chevron being the local manufacturer and a company registered in Colombo Stock Exchange with 49 percent equity will not have any impact on the issue as they could remain strong with their range of products, technology and the large customer base in bulk form without any packaging cost, he said.

IOC Managing Director Suresh Kumar said the company has its own manufacturing plant and the branded name and there is no issue with new players coming to the market. “However the Government should ensure that domestic manufacturing is increased which will give more benefit to the country,” he said.