In addition to JobbersWorld reporting on CITGO announcing it rescinded its previous price increase, Amalie also announced yesterday that it has rescinded its previously announced increase. Adding to this, Nu-tier Brands announced today that it too is rescinding its price increase. Details follow:
Due to recent changes in the marketplace Nu-Tier Brands advised its customers that it reevaluate its position concerning its price increase announcement letter dated January 21, 2020. As a result, Nu-Tier Brands price increase effective February 20, 2020 has been rescinded.
Amalie advised its customers that the price increase it announced on January 14, 2020 has been rescinded. It will revert prices back to the prices prior to the date of February 13th when the announced price increase took effect. It’s interesting to see that where Amalie was the first to announce a lubricant price increase in 2020, they are now the first to rescind the increase.
CITGO Petroleum Corporation
CITGO advised it marketers today that it will rescind its previously announced price increase of 12% on branded lubricants set to take effect on March 4, 2020. Whereas the announced increase was driven by continued escalation in component, transportation, and warehousing cost, recent changes in the marketplace reportedly gave cause for CITGO to reevaluate its previous announcement and rescind it.
Scroll to bottom of page for chronology of previously announced increases and those rescinded todate in 2020.
For many that JobbersWorld speaks with this is welcomed, yet not unexpected news. Whereas nearly all lubricant manufacturers in the US market announced price increases in January with effective dates in late February and early March 2020, the adjustments were, for the most part, attributed to increases in base oil prices occurring at the end of last year and early into January. Understanding that the base oil increases were primarily attributed to what appeared to be a sustained ramp up in the price of crude, marketers found themselves in an untenable position explaining the increases to customers when crude prices sharply retreated shortly after the start of the year. With that, many questioned if the increases would hold.