LIOC
Mid-Year Import Dynamics from 2023 to 2024
Performance Analysis Jan-Jun 2023 vs Jan-Jun 2024: The slight increase in refined petroleum imports from $1.456 billion in the first half of 2023 to $1.533 billion in the corresponding period of 2024 indicates a modest yet positive shift in import dynamics. This rise reflects an uptick in national demand due to economic recovery efforts as well as adjustments in global petroleum prices influencing import decisions.
In the earlier part of 2024, Brent crude prices generally trended downwards from the beginning of the year. For instance, prices in June 2024 hovered around $77.51 per barrel, which was a drop from $86.60 mid-July 2023. Throughout the early months of 2024, prices fluctuated but stayed consistently lower than the peak of approximately $88.66 in early July 2023
Fluctuating Trends in Sri Lanka's Refined Petroleum Imports
Sri Lanka's refined petroleum imports have shown fluctuating trends over the past years, with a peak in 2022 at $4.048 billion before dropping to $3.095 billion in 2023. The reduction may reflect a strategic shift in energy sourcing or improved efficiency in domestic usage, pointing towards a complex interplay of market dynamics and policy shifts influencing import volumes.
Stabilizing Import Values in Mid-Year Analysis
Comparing mid-year data from 2023 and 2024, refined petroleum imports slightly increased from $1.456 billion in the first half of 2023 to $1.533 billion in the same period of 2024. This stabilization suggests a recovery or adaptation in the energy sector, possibly driven by increased demand or changes in global oil prices affecting import costs.
Implications of Import Trends on National Energy Policies
The volatility in refined petroleum imports necessitates a deeper analysis of Sri Lanka’s energy policies and market strategies. The fluctuating import costs from 2019 to 2024 highlight the need for enhanced energy security measures and possibly diversifying energy sources to mitigate risks associated with global oil market instability.
Last Updated August 2024
Second-largest lubricant seller in Sri Lanka
Lanka IOC PLC operates within a dynamic lubricant market regulated by the Public Utilities Commission of Sri Lanka, which collects and disseminates operational information. The market includes 4 companies authorized for all activities and 27 for selective activities.Chevron Lubricants Lanka PLC leads the market with 5,124.08 KL (43.17% market share). Lanka IOC PLC follows as the second-largest with 2,519.62 KL (21.23%). This competitive positioning highlights the company's strong market presence.
Sales Performance
In Q3 2023, Lanka IOC PLC achieved a lubricant sales quantity of 2,519.62 KL, representing 21.23% of the total market share. This solidifies its position as the second-largest lubricant seller in Sri Lanka.
Revenue Generation
Lanka IOC PLC generated LKR 2,284.32 million in sales revenue for Q3 2023, accounting for 15.08% of the total market value. This underscores the company's substantial financial contribution to the market.
Product Segmentation
Lanka IOC PLC's lubricant sales portfolio primarily includes automotive oils, industrial oils, marine oils, and greases. Automotive oils lead in sales volume, driven by the demand for diesel engine oils, four-stroke motorcycle oils, and gasoline engine oils.
Last Updated June 2024
Source: Public Utilities Commission of Sri Lanka
Dramatic Shift in New Vehicle Registrations
2023 vs Previous Years: New vehicle registrations in 2023 to September stood at 17,547, continuing the trend of declining registrations observed over the past few years. Annual Trend Analysis: From a peak of 668,907 in 2015, registrations have significantly decreased annually, reaching a low of 20,511 in 2022, reflecting broader economic and industry-specific challenges.
Sectoral Analysis: Vehicle Industry Decline
2015-2023 Trend: The vehicle industry has seen a drastic reduction in new registrations, from the high in 2015 to substantially lower numbers in recent years. The decline from 202,628 in 2020 to just 33,850 in 2021 highlights the accelerated downturn.
Economic and Regulatory Impacts
Economic Influence: The sharp decline in vehicle registrations since 2020 from significant economic constraints leading to import retrictions.
Overview of Vehicle Registration Trends
2012-2023 Summary: Over the past decade, the vehicle registration landscape has transformed dramatically, marked by initial growth followed by a steep decline post-2019. This trend provides crucial insights into shifting market dynamics and future directions for the automotive sector.
Last Updated June 2024
Source: Department of Motor Traffic. Sri Lanka