Last week was marked by several price
increases on finished lubricants. The first
was ExxonMobil's
announcement on March 18th that, effective May
1, it will
increase the price of its branded and
unbranded lubricants and greases by up to 9%.
ConocoPhillips made its announcement the
following day when it
advised its marketers that effective May 1,
it will raise the prices on all of its
lubricants by 5 to 10%
The third announcement came on March 20th.
That's the date Shell sent letters out to all its
marketers saying there will be a general
price increase of up to 10% on its
lubricants. This increase goes into effect on
May 2.
But the price increases didn't stop on
Friday. That's because CITGO announced
yesterday that it will implement a general price
increase of 10% effective May 1. It should be
noted that in addition to yesterdays price
increase, CITGO announced on February
26th that it will increase the price of its
MileMaster brand. JobbersWorld is told this
price increase goes into effect April 1 and
will move the price of MileMaster up a modest
$0.14 a gallon.
In most cases, these recent announcement
translate to marketers paying roughly $0.40 a
gallon, or $0.05 a pound more for
conventional lubricants. And for synthetic
industrial lubricants, some marketers will
pay close to $1.00 more a gallon as a result
of this price increase.
In all cases, an as usual, the announced
price increases were accompanies by
statements saying these increases are the
result of the higher cost of "base oil,
additives, and packaging." - - Considering the
price of base oil has gone up close to $0.30
a gallon just over the last month, and some
additive companies have also increased their
prices recently, it's not hard to understand the
justification given this time around for the
higher
price of
finished lubricant.
For anyone wondering why Chevron's name
wasn't mentioned in last week's round of
price increases, that's because they took the
lead in
this round with an
announcement on February 21 that effective
March 20 its prices were going up by 5 to 9%.