Proper legal framework is essential for lubricant market

Tuesday, 3 December 2013 01:06 - - {{hitsCtrl.values.hits}}

The Public Utilities Commission of Sri Lanka (PUCSL) in collaboration with the Ministry of Petroleum Industries organised a workshop on the lubricant market recently in Colombo. The focus of the workshop was to discuss issues related to the importation of lubricants. The urgent need to establish new laws and regulations to create healthy completion in the lubricant market was discussed at this workshop, which was attended by representatives from the public and private sectors. Delivering the keynote speech, Ministry of Petroleum Industries Additional Secretary Sandya Wijayabandara said that the proposed amendments to the respective acts to enable the PUCSL as the regulator for petroleum industry were in progress.

The Petroleum Products (Special Provisions) (Amendment) Bill and Ceylon Petroleum Corporation (Amendment) Bill which will empower the Commission to be the economic, technical and safety regulator of the petroleum sector is to be presented to Parliament for enactment. Currently PUCSL, as the shadow regulator of the lubricant market, provides assistance to the Ministry of Petroleum Industries to regulate downstream petroleum products. Such assistance includes providing advice on renewal of licenses of importers of lubricant products, engaging in preparing tender documents for issuing licenses to lubricant importers, participating in preparation of standards for lubricant product, looking into the unauthorised activities in the lubricant market and advising the Ministry on such activities and customer awareness in the lubricant market. The regulation of the downstream petroleum industry is to be assigned to the Commission under PUCSL Act No. 35 of 2002. The downstream petroleum industry comprises of importing and exporting petroleum products or petroleum resources, refining and blending of petroleum resources or producing petroleum products, storing, distributing and transporting petroleum products or petroleum resources and wholesale and retailing of petroleum products. Petroleum products include petrol, diesel, kerosene, aviation fuel, marine fuel, furnace oil, liquefied petroleum gas and lubricants. The Lubricant Market Report 2012 compiled by PUCSL was presented to the Additional Secretary at the occasion. The report has revealed that a total number of 56,334 kilolitres of lubricants were sold during the year. The 2012 market is worth Rs. 20.85 billion. About 70% of the sales were automotive products. During the year more than 3,000 kilolitres of lubricants have been exported to regional markets. The Government receives income from the authorised parties by way of a biannual fixed and in some cases a variable registration fee, which equals one million or 0.5% of total invoiced sales for that period which ever higher, subject to maximum of Rs. 5 million. PUCSL Deputy Chairman Dr. Bandula Perera, PUCSL Director General Damitha Kurasinghe, PUCSL’s Consultant for Petroleum Sector Raja Amaratunga and representatives from the Sri Lanka Standard Institution, Import and Export Control Department and Sri Lanka Customs also addressed the gathering.