Going Up!
It looks like we are solidly into the first round of lubricant price increases in 2013. Four majors bumped prices up along with a number of independent lubricant manufacturers. Most say the price increases are necessary due to increases in the price of base oils. And in fact, it’s true, base oil prices did recently increase.
At the same time, many are wondering what the rest of 2013 will look like. This is because lubricant demand is still soft and significantly more base oil capacity is expected to enter the market when Chevron opens the spigots at its new 25,000 barrels per day API Group II base oil plant in Pascagoula, Miss. later this year. So buckle up, it could be an interesting ride.
The following is a summary of recent lubricant price increases:
ExxonMobil will increase lubricant and grease prices by up to 4%. This increase is said to be effective May 15, 2013.
Amalie announced a price increase on April 2. With the exception of grease, effective Wednesday, May 1, 2013, the price for all oil and automotive chemical products for all Amalie brands, as well as for all private labeled products will increase by $0.24 a gallon. Amalie grease products will increase by $0.03 a pound, effective May 1, 2013. There will be no increase for Amalie’s Greased Lightning branded aftermarket chemicals.
Safety-Kleen announced a price increase on its Performance Plus line of finished lube lubricants of $0.25 a gallon, effective April 27.
Old World announced that effective April 15, Old World will increase all bulk and packaged conventional and synthetic blend lubricant prices by 0.20 a gallon. The price of its bulk and full synthetics will remain the same.
BP/Castrol announced a general price increase on March 29, increase up to 4% on all passenger car, commercial and ancillary lubricants, including synthetics. This increase is effective May 6, 2013.
Warren Oil notified its customers on March 27 that it will be increasing the price of all conventional and synthetic blend packaged lubricants by $0.25 a gallon. This increase is effective May 1, 2013 and includes motor oils, ATF, gear oils, hydraulic oils, recreational oils, and gas engine oils. The price of Warren Oil’s bulk conventional and synthetic blend lubricants will increase by $0.20 a gallon, effective April 12. The company’s grease prices will increase 0.03 a pound effective May 1.
Smitty’s Supply Inc. sent letters out to its customers on March 26, 2013 advising about a price increase taking effect April 15, 2013. Conventional and synthetic blend bulk lubricants will increase by $0.20 a gallon. The price of the same products in packages will increase by $0.25 a gallon. There will be no change in the price of its synthetic lubricants. Grease prices will increase by $0.03 a pound.
Advanced Lubrication Specialties (LSC) announced that effective April 29, 2013, all products except full synthetics will increase by $0.20 per gallon.
CAM2 announced price increases on March 22, 2013. Its conventional and synthetic blend lubricants sold in bulk will move up by $0.20 a gallon on April 5. Packaged lubricants will go up by $0.25 a gallon on April 12. There will be no change in the price of its synthetics. The price of its grease will increase by $0.03 a pound.
Petro-Canada advised its marketers in the US that the price of its white oils and process oils will increase by 3% effective April 11. This increase was announced March 13.
As reported in the March 12 issues of JobbersWorld –
Shell Oil Products US (SOPUS) announced a general price increase of up to 4% on its lubricants. This increase was announced on March 11 and is effective April 15, 2013. SOPUS says the increase was in part due to increased costs of raw materials used in the production and delivery of its products.