Another Price Increase – First it was Shell, and now it’s ExMo
As reported in the April 1, 2014 issue of JobbersWorld,Shell Oil Products US (SOPUS) announced a general price increase on lubricants of up to 4%. The increase is effective May 5, 2014 and is said to be due in part to increasing costs of raw materials used in the production and delivery of its products.
Well Shell is not alone.
ExxonMobil announced today that it will increase its branded and unbranded lubricant and grease prices by up to 4%. The increase is effective June 5, 2014.
Whereas ExxonMobil is said to attribute the increase primarily to recent increases in base stock prices, it’s clear lubricant blenders are also feeling cost pressure from this months announced price increases for lubricant additives.
Although infrequent in comparison to price increases pushed through for base stocks, several of the leading additive companies advised their customers this month of a price increase. With both the price of base stocks and additives going up, it’s likely we will be hearing more about finished lubricant price increases in the very near future.