May 16, 2006

In this Issue of Jobbers World Online News Briefs
  • The price increases keep coming...
  • CITGO is ranked #1 in Petroleum Trends first Annual Report Card On the Majors

  • The price increases keep coming...

    As noted in last weeks Jobber World Online News Brief, the independent lubricant manufacturers were the first to move in this most recent round of price increases. One correction, however... Warren reportedly sent a letter out for $0.18 cpg increase but then retracted it roughly a week later to $0.33 cpg. The final increase was $0.33 cpg not $0.18 as reported in last week's news brief. As discussed, Cam2 went up $0.18 a gallon on bulk effective April 25. Advanced Lubrication Specialties (ALS) reportedly bumped its prices up by $0.36 a gallon. Other price increases Jobbers World has been made aware of since last week include the following:

    Amalie up $0.38 cpg on all products effective May 1. Safety-Kleen is moving effective June 1; word on the street is that its increase will be $0.35 - $0.40 cpg. Calumet reportedly went up May 1; close to $0.25 cpg. International Petroleum Corp of Hammond, IN went up $0.20 - $0.23 cpg effective June 4 on all products. This is in addition to a $0.10 cpg increase they pushed through on 4/17

    Chevron was the first major to move after the independents. Chevron announced it will increase the prices of all lubricating oils by 6% to 10%, and all gear lubes and greases by 4% to 6%. ConocoPhillips also informed its marketers that prices will increase 5-10% effective 6/12/06. Citgo and Shell have been silent, and ExxonMobil has yet to announce any price increases.

    When all the dust settles and the beans are counted it looks like this last round of price increases will usher in something close to $0.35 cpg higher prices for finished lubricants.

    In part these increases are understandable because additive prices are also increasing. Lubrizol for example, pushed through a price increase of 5% effective 5/15. Infineum was quick to follow with when it announced an additive increase effective 5/21 for up to 7%. At the same time, however, there has not been enough movement in base stock prices to explain this most recent round of price increases.

    CITGO is ranked #1 in Petroleum Trends first Annual Report Card On the Majors

    Marketers rank Citgo to be the leading major supplier of lubricants in the US market when the composite of 48 key business issues are considered by nearly 125 lubricant marketers. And it’s important to note that Citgo is not considered to be slightly ahead of the others, instead, its viewed as being significantly better than any other major.

    Areas where Citgo excels include: Complete Orders, Product Quality, VIP Program, Customer Service, On- line information, On-line ordering, Ordering policies, and Competitiveness of Pricing... and there are others

    Chevron ranked #2 in the Petroleum Trends Intl. survey which is due to be released next week. And allthough ExxonMobil, American Refining Group, ConocoPhillips, and Shell rank in the middle of the pack, each have very noticable strengths and weaknesses in the 48 areas surveyed.

    Additional highlights from the study will be made available in next month's print version of Jobbers World.

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