The Ceylon Motor Traders Association (CMTA) recently announced that it wants the government to address the grievances of the local lubricant industry. Appointing a regulator, rationalizing the HS codes, allowing unfettered access into the market, prevention of retail channel acquisition, and a revised duty structure to create more equitable conditions were some of the recommendations made by the CMTA.
Furthermore, the CMTA has proposed to Minister A H M Fowzie a license fee of 0.5% on turnover, making more equitable for all the players within this industry.
CMTA added that they discouraged the re-entry of Ceylon Petroleum Corporation into the lubricant business.’
Other concerns raised were to encourage toll blending to drive economies of scale and adjusting the duty differential to allow all players more participation in the large SAE 40 segment.