The PUCSL, the regulator of the lubricant industry, yesterday said that it would finalize the policy and regulatory framework on the lubricants market by the end of June, a top official said.“The commission expects to finalise the regulatory and policy framework for the lubricants market by 30 June,” PUCSL Director General Damitha Kumarasinghe said, speaking at the final phase of the public consultation on policy and regulatory framework for the lubricants market.
It was pointed out that the commission was ready to prepare regulatory tools addressing issues with regard to the price and quality of lubricants in the country.The PUCSL proposed a mechanism to investigate and prosecute those dealing in adulterated lubricants, guidelines for re-refining used lubricants and guidelines to be strictly followed by relevant agencies such as the Import and Export Control Department, Sri Lanka Customs and market participants with regard to the importation of unauthorised lubricants.
Taking into consideration the local value addition and investment by local blenders in addressing the price differences between imported and locally produced lubricants, the PUCSL has suggested to revise the duty structure.“PUCSL will revisit the proposed measures, taking the views of all the stakeholders present today into consideration and making necessary amendments or drafting more tools to address the issues and make recommendations to the Petroleum Resources Development Ministry by end-June this year,” Kumarasinghe said.
The public consultation process, which was opened for written submissions in March, yesterday saw more than 300 people participating in the discussion while 37 members of the public, industrialists, manufacturers, officials and experts expressed their views on the proposed mechanisms.Acknowledging that the market was liberalised at present, he agreed that authorisation was required to import, export, blend, produce, distribute, supply or sell lubricants in the country.
“The necessity of having an effective and independent mechanism for ensuring product quality, fair prices, protecting the interests of consumers and market players have arisen. Hence, PUCSL decided to hold a public consultation on issues related to the same with a view to advising the Government on remedial measures,” Kumarasinghe added.
Sri Lanka has 13 market players and 22 authorised lubricant brands. The lubricant market comprises lubricants and greases derived from mineral oil or synthesised from chemical compounds for automotive, industrial and marine applications. It is regulated primarily under the Ceylon Petroleum Corporation Act No. 28 of 1961 by the Ministry of Petroleum Resources Development with the advice and assistance of the PUCSL.