Counterfeit lubricants under reputed brands in the market - Chevron CEO

While the lubricant market issue hots up with intense competition, the market leader Chevron last week warned that a gray market is growing. Chevron CEO Kishu Gomes said that counterfeit products are in the market.

Filtered burnt engine oil is also being sold under reputed brand names and this is causing much damage to the industry and the economy, he said.

Gomes said that the market had declined during the first eight months of the year as a result of high inflation and high crude oil prices.

Caltex, first arrived in Sri Lanka in 1938 and was in the market until the lubricant and petroleum industry was nationalised in 1962.

From 1962 the industry was a CPC monopoly and in 1994 Lanka Lubricants, owned by the CPC was privatised and Chevron entered the market with a 51% stake in the company.

Today there are 14 players competing for 47 million litres in the market annually.

Gomes said that only two players, Chevron and LIOC are producing lubricants locally while the others are selling only imported products. One player brings finished products and re-packs it here, another company sells "Genuine Oil" and the other ten players sell packed finished products which are imported.

Gomes said that though Chevron is a multinational company, Chevron Sri Lanka is a 49% Sri Lankan company that produces its products here offering employment opportunities to people, adds value to the national economy and pays taxes to the government. He said that 54% of Chevron's income goes to the government as tax and various other levies.

Since from the nail to the engine of a vehicle is imported, we have to find the technology from other countries.

Chevron has brought the technology and the company also earns foreign revenue by exporting its products.

Gomes said its Bangladesh market grew by 20% this year and the company is also in the Maldives market. GW