Although buybacks fees have always been a
very contentious issue for lubricant
marketers, these fees have gained even more
attention over the past year due to the
escalating price of fuel. Whereas the buyback
fees of last year may still seem fare with the
majors today, marketers say they are not.
In the views of most marketers JobberWorld
speaks with, current buyback fees do not take
into account the recent run-up in the price of
fuel (let alone increases in labor costs,
insurance and others). They say, whereas the
price of diesel fuel alone has gone up
more than 30% in the last year, their buyback
fees have remained the same.
Although marketers say Shell's recently
announced $0.02 gallon increase in buyback
fees is not enough to cover their increased
cost of fuel to deliver buyback business,
most say; it's a start and at
least Shell appears to be listening to them
when they say it cost more for fuel today
than it did
yesterday. At the same time,
however,
many feel if Shell, and other majors are really
listening, they will realize a two cent a
gallon increase is woefully short of what is
really
fare when you take into account the higher
price of fuel.
An in-depth analysis of this issue (both
inbound and outbound transportation fuel
costs) will be
examined in the upcoming print edition of
Jobbers World.