Jobbers World News
November 14, 2007

  • Shell Makes a Move

  • Shell Makes a Move

    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


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