Shell advised its marketers yesterday that it will implement a series of actions to help it remain competitive in these challenging market conditions.

One action that certainly got the attention of its marketers is the announced price decrease on bulk lubricants by up to 8% effective December 1, 2008. This decrease will be followed by the same for packaged lubricants on January 5, 2009. Marketers say in dollars and cents, this means a decrease of roughly $0.44 a gallon on conventional lubricants.

In addition to the announced price decrease, Shell advised marketers about a short-term incentive program on case goods. The program is designed to drive year-end volume.

According to what marketers are told, the announced changes are rooted in what Shell described as unprecedented times. Times where we have seen tremendous volatility in crude oil prices, a rapid run up in base oil prices (followed by recent declines), higher additive costs, and allocations due to hurricanes.

From what Jobbers World is hearing, this announcement is certainly welcomed by Shell marketers and they say it clearly indicates Shell's responsiveness to these changing and challenging times.

Although Shell's announced price increase was the big talk yesterday, on November 25, Citgo also announced a price decrease taking effect December 1, 2008. This decrease is said to be in the area of $0.50 a gallon on all Citgo and Mystik brand finished lubricants. Some products are, however, excluded.

Whereas marketers say they welcome the decrease, they also noted that the TVA's under the brands expired on December 1, 2008.

NSF Certification Underscores Summit's Focus on Food Safety

NSF announced that KL Texas, L.P. (dba Summit Industrial Products), a worldwide leader in synthetic lubricant technology, is the first company in North America to receive Certification to ISO 21469: Safety of machinery - Lubricants with Incidental Product Contact -- Hygiene requirements.

"Obtaining Certification to ISO 21469 is important to Summit because our customers in the food industry want assurance that the products they buy meet strict quality and safety standards," said Summit President Fred Pate. "We believe by working with NSF to achieve independent certification, we not only improve the quality of our products, we also improve the confidence of our customers."

ISO 21469 specifies hygiene requirements for the formulation, manufacture, use and handling of lubricants, which may come into contact with products during manufacturing or processing. The international standard applies to lubricants intended for use in food production, as well as cosmetic, pharmaceutical and animal feed industries

"Certification to ISO 21469 by an independent, third party provides lubricant manufacturers with a means to obtain international acceptance for their products," said Sarah Krol, NSF Business Unit Manager. "By obtaining certification, Summit is emphasizing their overall commitment to safety."

Summit says its dedication to quality and to the environment is further demonstrated by its ISO 9001:2000 Quality Management Systems registration, ISO 14001:2004 Environmental Management Systems registration, and OHSAS 18001:2007 Occupational Health and Safety Management Systems registration. Summit's products have been registered by NSF's Nonfood Registration Program since 2004. Summit also has Kosher and Halal certification for many of their food grade products

Summit's lubricants will bear the NSF Certification Mark on their labels to demonstrate compliance to ISO 21469. Summit's certification is also listed on NSF's Web site

ConocoPhillips announced yesterday the addition of Kendall GT-1 Ultimate Synthetic Motor Oil to its existing Kendall Motor Oil line. According to Clarence McCollum, Director, Automotive Products, ConocoPhillips Company, this product is a premium full-synthetic passenger car engine oil specially formulated to meet the stringent performance requirements of the GM4718M ("Corvette") specification; it is also specified for use in most late model Cadillacs and all turbo-charged General Motors engines.

"Kendall GT-1 Ultimate Synthetic Motor Oil was developed by using the highest quality synthetic ingredients, resulting in unparalleled performance and long-term engine protection," said McCollum. "This new oil meets the strictest industry limits for low-temperature pumpability, volatility, oxidation stability, and piston deposits. By upgrading to this new motor oil, drivers can be confident that they are choosing the ultimate synthetic motor oil that will keep their car's engine running at peak performance."

Kendall GT-1 Ultimate Synthetic Motor Oil is available in two viscosity grades: SAE 5W-30 and SAE 10W-30. Both viscosity grades meet API SM/CF and ILSAC GF-4 performance requirements for new cars under warranty. The SAE 5W-30 viscosity grade also meets the performance requirements of the Honda HTO-06 standard for use in the Acura RDX.

Champion Brands, LLC introduces a new look for Champion Racing XP 20w50 motor oil. The new look, ready in January 2009, attractively expresses the main attributes of this purpose built oil. Champion Racing XP 20w50 motor oil has been extensively formulated and tested using desired levels of ZDDP for high performance competition injected, supercharged, turbocharged, and naturally aspirated engines using high-octane gas or exotic fuels.

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