|Big Price Moves!
According to industry sources, BPCastrol, Citgo, and
ExxonMobil have now advised their marketers of a
price increase. And from what Jobbers World is
hearing, the increases are big.
Castrol reportedly hiked its prices up by $0.58 to
$0.64 a gallon. The high end of this range applies to
its synthetics. Marketers say that after layering
the current everyday prices for Castrol’s PCEO,
Castrol price will be in the area of
roughly $8.00 a gallon for conventional PCEO.
ExxonMobil and Citgo reportedly also announced
price increases. According to a number of sources,
each company bumped the price of its conventional
lubricants by $0.48 a gallon. Synthetics are
reportedly going up by a whopping $0.72 a gallon.
Citgo’s price increase is said to take effect on June
19. ExMo’s increase will reportedly go into effect on
It will be interesting to see if the market places the
same level of value on the brand as some of the
majors. But according to marketers recently surveyed
Petroleum Trends International’s First Annual
Report Card on the Majors, they might not.
Instead, a significant number of marketers say their
customers jumped ship in record numbers after the
last price increase. Many marketers are now saying
the big brands are losing their luster because
customers are seeing a widening gap between the
designer brands and such others as mid-tier brands,
gas brands and
The questions that remain now are about Shell and
Valvoline. These companies have not announced a
|ConocoPhillips lifts allocations
ConocoPhillips has reportedly notified its marketers
that allocations will be lifted on June 1, 2006. This
has to be great news for both ConocoPhillips and its
In what had to be a heartbreaking experience for
ConocoPhillips, it ran into a number of problems with
it supply line during last years hurricane season, the
result of which was allocation. And these problems
could not have come at a more inopportune time.
This is because ConocoPhillips was, in the vernacular
of the street, “on a roll.”
Prior to the hurricane
season, ConocoPhillips was reportedly enjoying solid
growth as a result of a number of new product
introduction, its synthetic engine oil at conventional
oil pricing strategy, being awarded several key
national accounts, and other successful sales and
marketing initiatives. But then the hurricanes hit and
rather than continuing its push for growth,
ConocoPhillips had to put its marketers and direct
served customers on allocation. This certainly took
the wind out of ConocoPhillips sales.
The only question on the minds of marketers now is
quickly ConocoPhillips can recapture some of the
business they feel it lost while allocations were in
effect. But if
a company's past performance says anything about
its future perfromance, marketers say you can be
ConocoPhillips will once again soon be "on a roll."
If you have news about lubricant marketers...
including acquisitions, new product introductions,
alliances, promotions, new locations, websites, or
others, please let us know.
We will be glad to consider publishing this news in
the Jobbers World Online News Brief.
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