Jobbers World News
April 21, 2008

  • Update Regarding Shell's Buyback Fees
  • ExMo Introduces New "Advanced Fuel Economy Motor Oil"

  • Update Regarding Shell's Buyback Fees

    JobbersWorld Online reported on Friday of last week that Shell increased its buyback fees by $0.02 cents a gallon. It should be noted, however, that this increase reflects only one of two increases Shell announced to its distributors earlier this month.

    The first is a $0.05 a gallon increase that takes effect on May 1, 2008. The second is a $0.02 a gallon increase scheduled for September 1, 2008. This represents a $0.07 a gallon by increase in Shell's buyback fees by September 1.

    Although its difficult to determine if these increases will adequately cover the higher costs of fuel moving forward, marketers continue to applaud Shell for being sensitive to the skyrocketing price of diesel fuel and its impact on delivery costs. In addition, they say they are encouraged by some of the progressive thinking Shell has expressed about ways to address the variable costs in buyback business in the future.

    For those not familiar with buyback fees, these are fees paid to lubricant distributors by major oil companies to deliver product for the major to its accounts. The fee is fundamentally a delivery fee. In the case of Shell, these fees are typically called Deliver for Our Account (DFOA) fees.


    Simons Petroleum, Inc. ("Simons") announced today a definitive agreement with Love's Travel Stops ("Love's"). Under the agreement, Love's national travel center locations will become the anchor chain of the successful Simons' Pathway Network, effective May 9, 2008.

    Created in 1994, Pathway Network provides trucking fleets of all sizes with unique ways to control volatile fuel costs through a variety of proprietary offerings designed for over-the-road trucking fleets. Pathway's 14 year relationship with its current anchor chain, TravelCenters of America or "TA", will officially end on November 7, 2008. Simons' agreement with TA provides for a transition period and the addition of the Love's locations, beginning May 9, 2008, will facilitate the transition period for all of Simons' customers and give Pathway Customers additional options for utilizing Pathway's programs at the Love's locations.

    Love's Travel Stops currently operates 150 Interstate facilities with plans to grow their network of locations by 20 full facility sites per year.

    "We are excited for Love's to become Pathway's new anchor chain. Both the Love's and Simons organizations share similar values and we believe Love's growth strategy is well matched with our plans for the future." said Brad Simons, President of Pathway Network.

    In addition to the Love's locations, Pathway Network will continue existing relationships with Independent Truck Stop sites to ensure the same nationwide coverage its customers have experienced in the past.

    Simons Petroleum, Inc. is a national marketer of petroleum products, focused on providing a comprehensive fuel and lubricant offering to commercial and industrial industries. Hedging and financial management tools, proprietary fuel management applications, engineering and testing services and custom products differentiate Simons in the marketplace. Simons is an operating company of Maxum Petroleum, Inc., based in Old Greenwich, CT. Maxum is a leading independent energy logistics company that markets and distributes a comprehensive offering of refined petroleum products and services to commercial and industrial customers.

    ExMo Introduces New "Advanced Fuel Economy Motor Oil"

    ExxonMobil announced earlier this month the national launch of Mobil 1 Advanced Fuel Economy. It's a synthetic motor oil that ExMo says can save consumers fuel and benefit the environment by reducing greenhouse gas emissions.

    "Helping improve energy efficiency in modern gasoline engines, Mobil 1 Advanced Fuel Economy improves fuel economy by up to 2 percent compared against 5W-30 and 10W-30 engine oils," said Alan Kelly, president, ExxonMobil Lubricants & Specialties Company.

    If just one-third of U.S. motorists reduced their gasoline consumption by 2 percent, almost 1 billion gallons of gasoline and 8 million tons of carbon dioxide emissions would be saved every year. This would be equivalent to taking around 1.5 million cars off the road.

    With significant expansion in distribution, Mobil 1 Advanced Fuel Economy is now being made available to consumers across the U.S. in major auto and retail outlets.

    Addressing the trend of car manufacturers moving to lower viscosity oils, the two Mobil 1 Advanced Fuel Economy products meet or exceed warranty requirements for most GM, Ford, Chrysler, Honda, Toyota, Mazda and many other imports. Mobil 1 Advanced Fuel Economy 0W-20 is recommended by ExxonMobil for 5W-20 applications and Mobil 1 0W-30 is recommended for 5W-30 and 10W-30 applications.


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