ExxonMobil advised its marketers yesterday that effective August 1, 2008, it will increase the prices for Exxon and Mobil lubricants and greases by up to 15%. The increases reportedly applies to both branded and unbranded lubricants.

In addition to price increases on finished lubricants and greases, ExMo has reportedly advised marketers there will be price increases on some of its lubricant related services.

To their credit, lubricant marketers say ExxonMobil does a very good job explaining why the price increases are necessary. Unlike other majors that often provide no more than "just another form letter" advising of price increases, ExxonMobil provides marketers with documentation to illustrate the drivers behind the price increases.

According to marketers, Castrol sent out a letter on June 18th advising its marketers there will be a price increase on its lubricants by as much as 20% effective August 4, 2008.

Interestingly, marketers say Castrol's letter seemed to suggest marketers hold on to their hats because additional price increases were likely due to the volatility of the market.

ExxonMobil introduced its Emission System Protection (ESP) motor oil Mobil 1 ESP to the US market about two years ago. It conforms to the new 'ACEA C3' category of Low Emission products recently introduced by the European Automobile Manufacturers Association (ACEA), as well as the existing ACEA A3, B3 and B4 categories.

The new ESP technology has received OEM approvals from some of the world's leading car manufacturers such as Mercedes Benz (MB), BMW and Volkswagen (VW) Group.

But according to a number of lubricant marketers that have contacted JobbersWorld over the past year, there is one concerning question about this product. That is, where can you buy it, and what alternatives are available that meet the relatively new Mercedes 229.51 specification for 5W-40?

Based on the absence of the product in the marketplace and ExMo's website (see link below), they say the answer is a troubling, "you can only get 5W-40 ESP in the US at a Mercedes-Benz Dealership and there are few alternatives that meet spec. "

So why should this concern lubricant marketers, fast lube operators, and others in the business? In the words of some, maybe because "it suggests ExMo has decided to make auto dealers the exclusive marketers of this product." Secondly, they say, "are quick lubes now excluded from changing oil in 2006+ Mercedes unless they buy oil from a Mercedes dealer?" And finally, they ask, "is is this a harbinger of things to come?"

Let us know what you think. We plan to publish comments in the next issue of JobbersWorld Online News briefs.

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