Jobbers World News
July 28, 2008

  • ExMo Ups its Price
  • Chevron Moves on Price
  • CITGO also moves up
  • Up North too
  • SMF Energy Corporation Enters Into Multi-Year Lubrication Marketers Agreement With Chevron
  • Contact Us With Your News

  • ExMo Ups its Price

    ExxonMobil announced late last week it will increase the price of its branded and unbranded lubricants up to 18%, effective September 1, 2008. This increase applies to conventional and synthetic lubricants.

    Once again, rather than just saying the price increase is necessary due to rapidly increasing costs, marketers appreciate that ExMo takes it a step further by providing supportive material they can show their customers to help explain why the increases are occurring.

    Chevron Moves on Price

    Chevron advised its distributors of a price increase on lubricants and greases effective September 8, 2008. According to marketers, prices will move up by as much as 18%.

    As with other price increases of late, marketers are being told Chevron's increase is in response to the unprecedented rise in raw material costs.

    Interestingly, however, marketers say Chevron adds that base oil supply has been tight due to reliability issues at several base oil plants, a facility closure and turnarounds. In addition, they are told some of the base oil feed in the market is being diverted to make fuel.

    CITGO also moves up

    CITGO announced on Friday it will implement a price increase on all finished lubricants by 18% effective September 1, 2008. Marketers are told this increase will apply to all brands, package sizes and classes of trade.

    Up North too

    Word on the street is that our friends up North (Petro-Canada) also announced a price increase on finished lubricants and greases of up to 18% effective August 25.

    SMF Energy Corporation Enters Into Multi-Year Lubrication Marketers Agreement With Chevron

    SMF ENERGY CORPORATION, (NASDAQ: FUEL), a leading provider of specialized transportation and distribution services for petroleum products and chemicals, today announced that its wholly owned subsidiary, H & W Petroleum Company, Inc., has entered into a multi-year Lubrication Marketer Agreement with Chevron Products Company, a division of Chevron U.S.A. Inc., to market Chevron branded lubricants. The Company's similar agreement with Chevron U.S.A. for its Texaco brand of lubricants which was entered into in 2005 also remains in place.

    Chevron Global Lubricants North America had previously announced that it was combining the Chevron and Texaco Commercial and Industrial (C & I) lubricant brands under the Chevron master brand name, with the exception of its consumer product offerings marketed under the Texaco Havoline product line, which will continue to be marketed through its Texaco Xpress Lube network and its other marketing channels.

    Gathright continued, "Chevron is recognized as a market leader in the production and marketing of commercial, industrial and consumer lubricants. With this consolidation, Chevron will have a single branded product line that will allow us to provide a single source solution for our customers. We will be able to leverage the strength of both brands in specific applications and offer a more inclusive product line, while providing assurance of the historical Texaco product formulations to those customers who have come to rely on them in their applications. The addition of the Chevron product line to our Texaco portfolio will allow us to reach out to new bases of business that in the past would have required multiple vendors."

    Richard E. Gathright, President and CEO commented, "As recently reported in Fortune Magazine, Chevron is the 6th largest company in the U.S. by revenue, with over $200B in sales. The consolidation of the Chevron and Texaco brands and product lines is an exciting development for the Company and specifically our Mid-Continent Division lubricant operations in Texas. The addition of the Chevron brand fills in some product gaps in the Texaco line, allowing us to provide our customers with the broadest possible commercial and industrial product line. Our customers will also benefit from Chevron's retention of all its prior Texaco formulations by re-branding them as Chevron, averting any potential product conversion issues for our customers. In addition, we are pleased to add the Chevron Delo HDMO product line, which will complement our former Texaco, now Chevron, Ursa Super Plus heavy duty offering, since the Delo line of heavy duty motor oils is the market leader in brand recognition."

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