Jobbers World News
December 11, 2007

  • ARG Rethinking its Recent Price Increase
  • NASM Opens Doors to Lubricant Marketers
  • Albemarle Bumps Antioxidant Prices
  • CITGO's ups MileMaster Prices

  • ARG Rethinking its Recent Price Increase

    The American Refining Group (ARG) notified marketers yesterday that it decided to postpone the price increase it announced on December 24, 2007. According to what marketers are have been told, ARG's decision was driven by the company's interest in further assessing the impact the most recent round of base stock price increases will have on its cost position.

    From what Jobbers World is hearing, ARG expects the general price increase will remain in the range of 5% to 9%. Synthetics and some specialties could range higher.

    As some may recall from an feature story Jobbers World ran about the American Refining Group (ARG), ARG produces PENN-GRADE base oils, petroleum resins, petroleum extracts, slack waxes, and petrolatums under the Kendex product name. It also produce specialty PENN-GRADE. naphthas and distillates under the Kensol product name.

    The company has a state-of-the-art blending and packaging facility for high-speed production of engine oils, gear/transmission oils, hydraulic oils and other specialty lubricant products. ARG packages and distributes its own line of lubricant products under the BRAD PENN name.

    NASM Opens Doors to Lubricant Marketers

    The National Association of Shell Marketers (NASM) opens its doors to two additional Shell petroleum product providers -- Lubricant marketers and subjobbers

    In recognition of the mutual priorities of Shell fuel marketers and lubricants marketers, the NASM Board of Directors has voted to accept Shell lubricant marketers as members of NASM. NASM is gearing-up to offer the same services to Shell lubricants marketers which it has provided Shell fuel marketers for years.

    The National Association of Shell Marketers (NASM) is a brand specific trade association which represents the interests of those companies which have wholesale contracts with Shell Oil. NASM 1) promotes the Shell brand; 2) maintains a Dialogue with Shell on behalf of its members; 3) engages in public policy advocacy on behalf of petroleum marketers; and 4) provides Shell marketers with access to valuable services and information.

    According to Darrell Smith, President of the NASM, the association is hear to help all wholesalers who have tied their fortunes to the Shell brand. He says the association will be listening carefully to its new lubricants members and endeavoring to provide surprising value in exchange for their membership commitment.

    The association is reportedly preparing to discuss lubricants issues with Shell as part of its Dialogue project, and its preparing a legal analysis of the Shell wholesale lubricants contract which will be available to members (along with free and discounted legal services).

    Smith encourages all Shell lubricants marketers to explore the association at www.nasmonline.com -or by contacting him at 202-337-6276.

    To qualify as a member of the LMMS, the marketer must have a current Lubricants Marketing Agreement with Shell, and not have a fuel marketing agreement. At a future date, a Chairman of the LMMS will be appointed, and lubricant members will be given the opportunity to shape the mission of the LMMS.

    Albemarle Bumps Antioxidant Prices

    Albemarle Corporation announced last week a price increase on its Ethanox antioxidants. Ehtanox is one of the leading antioxidants used in fuel and lubricant additives. The price increase will reportedly range from $1.75 to 2.65 a pound. This increase is expected to move the cost of antioxidant treatment in lubricants up by roughly $0.01 to $0.02 a gallon.

    Similar to increases announced by others, Albemarle's increase is said to be driven by the higher cost of crude oil and its derivatives.

    CITGO's ups MileMaster Prices

    CITGO announced today that it will implement a $0.24 per gallon price increase in the MileMaster product line. This increase will reportedly go into effective on January 1, 2008.

    Not surprisingly, CITGO says this increase is a result of the market realities everyone in the business is facing. That is. the escalating costs of base oils and additives.


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