|BREAKING NEWS - Maxum Aquires Paulson Oil (POCO)
Maxum Petroleum ("Maxum"), a leading
energy logistics company acquired Paulson Oil
at the end of last week.
Headquartered in Chesterton, Indiana, Paulson
Oil (POCO) is one of the largest fuel and
lubricant distributors in the Mid-west. The
company was founded in 1973 by Bob and Pete
Paulson. POCO's lubricant brands include
CITGO, the Shell family of brands, and
Maxum Petroleum, Inc.is a leading energy
logistics company. The company has grown to
become the largest lubricant distributor in
the US through a series of several large
acquisitions of the past few years, including
Canyon State, General Petroleum, Petroleum
Products Inc, and Simons Petroleum.
And last month, Maxum, through one of its
operating subsidiaries, Simons Petroleum,
acquired the assets and business operations
of Farmington Oil Company, a regional
petroleum marketer based in Farmington, New
More details to follow in the next edition of
Jobbers World Online News!
|Valvoline Follows the Crowd and Bumps Prices
Valvoline advised its marketers late last
Friday that it will increase the price of its
lubricants by 11% effective January 21, 2007.
This increase will apply to all Valvoline
lubricants and greases.
|Chevron Increases Prices on Small Packages
In addition to the price increases previously
announced by Chevron, the company advised its
marketers last week of a revision to the
increase. The revision is specific to
lubricants sold in
small packages. Specifically this includes a
$0.36 a gallon increase for
quarts and gallons.
This increase applies to Havoline and URSA,
as well as Supreme and Delo in small packages.
|Castrol did too
And for those that might have missed it,
Castrol announced an increase in its prices
to marketers on November 30.
Depending on product and package size, this
increase ranges from $0.44 to $0.76 a
gallons. Although announced prior to
Chevron's revision impacting small packages,
Castrol's increase is also heavier on
|Low Prices - Caveat Emptor!
In a recent issue of Jobbers World Online we
report a supplier was getting aggressive on
price and marketers were being offered PCEO
and HDEO at prices under $4.00 a gallon in
bulk. This news piece garnered a good deal of
attention; both positive and negative.
On the positive side, some thought it was
great that while the majors were bumping
prices up, at least one supplier was "holding
the line" with very competitive pricing.
Those in this camp felt this supplier offered
a good alternative to the major brands and an
opportunity to participate in a wider , more
cost sensitive segment of the business.
Others agreed and added that, this supplier
was not alone, they said "similar pricing" is
available from other independent lubricant
manufacturers, and a rerefiner.
But then there were the negative comments
about the news piece. These comments shared a
common thread. That being, although price is
certainly important, Jobbers World On-Line
would have done marketers a greater service
if it had also included information about
what marketers should look out for when
considering the purchase, and ultimately
resale of low price products. While not
pointing fingers at any particular supplier,
they say in some cases, lower price can mean
lower performance and/or quality. And if it
does, a lubricant
marketer may find that the price its business
pays for selling low cost lubricants can be
very high. As a result, they added, although
there will always be good deals in the
marketplace, marketers and their customers
should carefully consider the quality and
claims of low cost lubricants before they buy.
So let's look at some of the things marketers
and end users need
to be careful of.