Only three days after Chevron advised its
marketers that it will increase prices an
average of 5% and 9% on lubricating oils, and
3% to 5% on gear lubes and greases, Shell
lubricants
announced to its US marketers today that it
will increase the price of its lubricants by
up to 10%.
Interestingly, the effective date of Shell's
increase is January 14, 2008. Historically
this is over twice the lead time
majors typically give marketers when they
push through price increases. Chevron's
increase for example, kicks in on December
20, 2007.
What comes as no surprise, however, is that
Shell attributes this price increase to
increasing costs of raw materials used in the
production and delivery of its products.
Although this language is often considered by
marketers as no more than cut and paste
verbiage from every other price increase
letter, it certainly makes sense given the
recent hike in the price of base stock