The 2016 budget proposal for the liberalisation of lubricants imports is not the correct move says L. P. Tillekeratne CEO of N. M. Distributors, importers of Shell Lubricants.
Commenting on the on the Budget he says that the proposal made at the budget speech on the liberalization of lubricant imports will have several negative impacts on the lubricant user and the Government at large.
"The present annual demand for lubricants in the country is estimated around 54million liters and is in a downward trend due to the discontinuation of diesel power generation, and high quality lubricants with longer oil drain intervals being available to the vehicle users, he added.
He further said that the present small market is being shared by 13 international suppliers including 3 companies having blending facilities."
At present all most all the high quality international lubricant brands are available to the local consumer which makes the vehicle engines and the heavy industrial machinery to have a trouble free operation at low maintenance cost for a longer period of time.
He also said that even in India, having a much larger market volume comparatively has a lesser number of suppliers in the lubricant sector.
This will ensure better control and a better quality system, otherwise it will have several negative impacts in the automotive and industrial sectors.
Tillekeratne believes that the proposed liberalization will open the gates to several low quality imports to penetrate into our market resulting several engine failures in the automotive and industrial sectors where additional foreign exchange will be needed for importation of new engines and spare parts.
Also the country is presently not fully equipped to carryout high standard of quality control laboratory tests to ascertain suitability and the other parameters of the lubricants being imported to the country.
He further stressed that in spite of the present regulations in force, several non-licensed importers do import lubricants having different quality standards, which the government is yet to control.
Also in a market driven by price, most of the customers in the automotive sector and industrial sector are not fully aware of the major characteristics of various lubricants that are presently in use.
If the proposed liberation of Lubricants is made effective, several vehicle owners who have spent millions of rupees for their new vehicles may face serious difficulties,with engine failures, when low quality lubricants start penetrating to the country at a lower price.
Tillekeratne at the end said that all 13 players are requesting for a constructive dialogue with the Minister in order to stress their concerns.
www.dailynews.lk
Commenting on the on the Budget he says that the proposal made at the budget speech on the liberalization of lubricant imports will have several negative impacts on the lubricant user and the Government at large.
"The present annual demand for lubricants in the country is estimated around 54million liters and is in a downward trend due to the discontinuation of diesel power generation, and high quality lubricants with longer oil drain intervals being available to the vehicle users, he added.
He further said that the present small market is being shared by 13 international suppliers including 3 companies having blending facilities."
At present all most all the high quality international lubricant brands are available to the local consumer which makes the vehicle engines and the heavy industrial machinery to have a trouble free operation at low maintenance cost for a longer period of time.
He also said that even in India, having a much larger market volume comparatively has a lesser number of suppliers in the lubricant sector.
This will ensure better control and a better quality system, otherwise it will have several negative impacts in the automotive and industrial sectors.
Tillekeratne believes that the proposed liberalization will open the gates to several low quality imports to penetrate into our market resulting several engine failures in the automotive and industrial sectors where additional foreign exchange will be needed for importation of new engines and spare parts.
Also the country is presently not fully equipped to carryout high standard of quality control laboratory tests to ascertain suitability and the other parameters of the lubricants being imported to the country.
He further stressed that in spite of the present regulations in force, several non-licensed importers do import lubricants having different quality standards, which the government is yet to control.
Also in a market driven by price, most of the customers in the automotive sector and industrial sector are not fully aware of the major characteristics of various lubricants that are presently in use.
If the proposed liberation of Lubricants is made effective, several vehicle owners who have spent millions of rupees for their new vehicles may face serious difficulties,with engine failures, when low quality lubricants start penetrating to the country at a lower price.
Tillekeratne at the end said that all 13 players are requesting for a constructive dialogue with the Minister in order to stress their concerns.
www.dailynews.lk
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