Lubricant market records slight recovery in 1Q

• Lubricant sales volumes increase by 8.24% in 1Q23 to 10,395.19 kilo litres
• Automotive oils and marine oils experience significant growth, while industrial oils decline
• However, YoY lubricant sales volumes decline by 49.18%, due to a high base effect from previous year 

By Nishel Fernando
Sri Lanka’s lubricant market recorded a slight recovery in the first quarter of this year on a quarter-on-quarter basis, after plunging to a 13-year low in 2022, the lubricant market data released by the Public Utilities Commission of Sri Lanka (PUCSL) showed.
Lubricant sales volumes rose by 8.24 percent in 1Q23 to 10,395.19 kilo litres (KL), from 9,603.85 KL in the previous quarter (4Q22). 
“This indicates a positive trend in the lubricant market, with an overall increase in demand across different lubricant types. Automotive oils and marine oils experienced significant growth, while industrial oils showed a decline,” the PUCSL noted. However, lubricant sales volumes recorded a sharp decline of 49.18 percent on a year-on-year (YoY) basis in 1Q23, mainly due to a high base effect. The first quarter sales volumes accounted for over 40 percent of the overall annual sales 
in 2022. 

This was an exceptional surge in sales volumes in the period, primarily driven by the consecutive price increases in this period, where the consumers and retailers purchased extra quantities, anticipating future price hikes. Chevron Lubricants accounted for a 48.57 percent market share in terms of sales volumes in 1Q23, down from the 53.84 percent market share it held a year ago. However, Chevron had a market share of 42.06 percent in terms of sale value in 1Q23, down from 49.75 percent a year ago.
Meanwhile, Indian Oil Corporation’s market share in terms of sales volumes rose marginally to 20.76 percent in 1Q23, from 20.05 percent a year ago, while its market share in terms of sale value also rose to 15.17 percent in the quarter, from 14.45 percent a year ago. ExxonMobil Asia Pacific Pte. Limited emerged as the third largest lube player in terms of sales quantity, with a 7.66 percent market share in 1Q23, down from the 7.71 percent market share recorded a year ago. However, in terms of sale value, its market share rose to 11.68 percent in the quarter, from 10.88 percent a year ago.
Toyota Tsusho Corporation was the fourth largest player in terms of sales quantity, with a 4.33 percent market share, up from the 3.09 percent market share it held a year ago. However, it accounted for a 9.34 percent market share in terms of sale value in the quarter under review.
Meanwhile, Laugfs’ market share fell to 4.01 percent in 1Q23, from 4.21 percent a year ago and in terms of sale value, it fell to the fifth position, with only a 3.73 percent market share.
Among the new players, Lukoil Marine Lubricants was the most successful in penetrating the market, with a 0.43 percent market share in sales volume and 0.81 percent market share in sale value. 

In addition, Apar industries Limited and Technolube LLC also recorded notable market shares in the quarter.