More Price Increases
Add Pinnacle Oil Holdings, Nu-Tier Brands, and Reliance Fluid Technologies to the list of companies announcing lubricant price increases. As with other recent prices adjustments, these too are attributed to the rising costs of raw materials, manufacturing, and transportation.
As noted in an earlier edition of JobbersWorld, although there is always pushback when price increases rollout, marketers say that constrained supply of finished lubricants is currently the primary issue for them and many of their customers. This is because we are in a period of an unparalleled supply shortages in finished lubricants and the availability of some types and grades of PCMO, HDEO, gear oil and others are extraordinarily tight.
While there are a number of reasons for the severely constrained supply, several majors have communicated to their marketers that the primarily issue is the availability of certain lubricant additives.
Ongoing repairs at some lubricant additive manufacturing plants from prior weather-related disruptions, logistical challenges, global supply chain issues, and rebounding demand for finished lubricants as we recover from the pandemic are cited as reasons for the supply issues. As a result, lubricant marketers are seeing deep allocations, extended lead times, limited availability, and in some cases, they are advised, that, if necessary, temporarily transition to alternative formulations or suppliers for the affected types and grades of lubricants.
These are extraordinarily challenging times for many in the lubricants business, and while some marketers are hearing that the situation will normalize in four to five weeks, doubt remains among the many marketers JobbersWorld speaks with. And the reason for the doubt is this is what they have been hearing for most of the year.
Related story: Supply is King at this Moment in Time
The following is a summary of recently announced increases reported in JobbersWorld.