More Price Increases
Nu-Tier Brands / Gulf Lubricants will be implementing a general price increase of 10 to 15% on all finished synthetic lubricants and greases, effective September 20, 2021. The adjustment is due to rising costs caused by the scarcity of materials in the synthetic oil market.
Smitty’s Supply will increase prices on all full synthetic lubricants by up to 8%, effective September 20, 2021. The price increase is driven by the short supply of additive and base oil specifically used to manufacture these full synthetic lubricants.
CAM2 International, LLC is implementing a price increase of up to 8% on full synthetic lubricants. New pricing will be effective for orders placed on or after September 20, 2021. The adjustment is necessary due to the continuing allocations in additive and base oil, specifically with respect to Group III based products.
This year is clearly one for the record books in terms of lubricant price increases. With roughly three and a half months left to go, there have already been six industry wide price increases implemented and, although primarily impacting synthetic and synthetic blend lubricants, many have now announced a seventh price increase.
So, how is the market reacting?
According to a number of lubricant marketers JobbersWorld speaks with, although there is always pushback when price increases rollout, constrained supply of finished lubricants is currently the primary concern. We are in a period of an unparalleled shortage in finished lubricant and the availability of some types and grades of PCMO and HDEO are on close to 100% allocation. In other words, some products are simply not available.
Illustrative of just how tight supply has been, due to shortages and outages, one OEM advised its new car dealers in July that per the owner’s manual, a one-time use of 0W-20 could be used in place of 0W-16 for one oil change interval. Further, they provided dealers with guidance in the event they are at risk of running out of oil.
This is an industry wide issue. In addition to new car dealers, other installers and fleets are feeling the pinch.