Mar 30, 2017

Local market alarmed over tax hike on synthetic lubricants

The recent steep rise in duty and tax imposed by the government on synthetic lubricants is causing alarm in the market, as lubricant suppliers are now starting to pass on the hike to the end users.the duty and taxes have been increased by 31 percent.

This has forced suppliers in the local lubricant market to increase prices accordingly and consumers are affected adversely as they have to pay substantially higher prices as a result. Local franchise car agencies too are affected, as they are forced to pass on a substantial cost increase
to the customer.

Unfortunately, this duty and tax hike will only result in discouraging the vehicle owners from using synthetic lubricants due to the high price. This is not a welcome development for the country as synthetic lubricants help vehicles to perform better, when compared with conventional oils, thereby saving exchange for the country and less emissions.

With vehicle manufacturers’ encouraging the use of synthetic lubricants for all types of vehicles, the move by the government will severely impact the vehicle owners. Synthetic lubricants are proven to be more environmentally friendly, as emission levels are comparatively lower, draining intervals are higher and as a result more mileage could be achieved.

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