Jobbers World News
February 17, 2009

  • ExMo Drops Price on Lubes
  • Chevron Announces a Price Decrease
  • Castrol Advises About a Price Decrease
  • Ouch! Shell Gets Bad Grades from Marketers
  • CITGO Makes Some Cuts and Some Moves
  • Maxum Petroleum Closes on $300 Million Investment from Metalmark Capital and Waud Capital Partners
  • Contact Us With Your News

  • ExMo Drops Price on Lubes

    ExxonMobil advised its marketers that effective February 17, 2009 its branded and unbranded lubricant and grease prices will decrease by up to 10%. According to several markets JobbersWorld spoke with, this decrease equates to $0.52 to $0.68 a gallon for lubricants and about $0.07 a pound for greases, depending on a number of factors. In addition to the type of lubricants or grease, they say another important factor to consider in the price decrease is if the product comes with or without options. Options speak to value add programs and services packaged with the product purchase.

    Chevron Announces a Price Decrease

    Chevron announced today that it will decrease marketer's prices for lubricants by up to 9% effective March 2, 2009.

    Castrol Advises About a Price Decrease

    Although some marketers say they are still waiting for the letter, others tell JobbersWorld the have been advised that Castrol (Automotive, not industrial) have advised them of a price decrease of 60 cents on bulk and 70 cents on packaged lubricants.

    Ouch! Shell Gets Bad Grades from Marketers

    Preliminary insights and information developed for Petroleum Trends Intl.'s multiclient study titled: Lubricant Supplier- Distributor Relations, 2008, indicate Shell's lubricants group in the US comes up way short in a number of areas its marketers consider important when doing business with majors. In fact, a significant number say Shell is the most challenging major in the market to do business with.

    Some of the areas where they Shell is said to be noticeable lacking include; delivering orders on time and as ordered, complaint resolution, continuity of contact, policies (too fluid), and that they continue to compete with their marketers. And when it comes to providing answers to pressing questions, marketers often Shell is at the back of the pack.

    Although marketers say, they are told these issues are part of the growing pains associated with Shell's move to a Global SAP system (GSAP), in the views of many Shell marketers, that story is getting old. In addition, they ask, "How many times will Shell reorganize before improvements are seen?"

    But, to end on a positive note, Shell marketers and others in the business say they are encouraged, if not intrigued, by Shell's new "Man in a Van" program. According to marketers, Shell piloted the program about a year ago and is now aggressively working with its marketers to share the cost of putting branded vans on the street to promote and distribute Shell automotive chemicals (flushes, fuel injection cleaners) and hard parts.

    LUBRICANT SUPPLIER-DISTRIBUTOR RELATIONS, 2008 is Petroleum Trends International's second comprehensive analysis of the perceptions that the lubricant market have about the major suppliers of lubricants in the U.S. market. For more information about this study, contact Petroleum Trends Intl. at info@petroleumtrends.com

    CITGO Makes Some Cuts and Some Moves

    The following is pulled from a Citgo Press release on Feb 11, 2009.

    "As part of an effort to respond and adapt to the unprecedented economic crisis currently facing the United States, CITGO Petroleum Corporation has undertaken a restructuring process which will have a minimal impact on the company's payroll. Of the 3,762 employees currently working at CITGO, less than 2 percent have been impacted by this restructuring process, which has been implemented in order to optimize organizational performance. The few impacted employees are being offered special separation packages. CITGO hereby categorically denies some news reports of alleged massive employee layoffs in the company."

    Although JobbersWorld is not the pub who reported on any "massive employee layoffs in the company" we are well aware that something significant has taken place within the CITGO lubricants organization.

    First, there can be no denying by CITGO that a number of professional in its US lubricants group have been given pink slips. The only question is how many? Secondly, it's clear from what a number of marketers have been told across the country, that CITGO is in the process of reorganizing its lubricants group. Some have been told the reorganization will result in an East and West Coast Division.

    Although these changes are certainly very painful for those that got the boot, a number of marketers express optimism that CITGO is doing what it has to in order to grow its business in these challenging economic times. Some go even further by saying CITGO is now going back to its roots, roots that at one time made it the most marketer friendly major in the business.

    Maxum Petroleum Closes on $300 Million Investment from Metalmark Capital and Waud Capital Partners

    Maxum Petroleum, Inc., a leading energy logistics company, announced that it has completed the previously announced $300 million equity investment from leading private equity firms Metalmark Capital and Waud Capital Partners. Going forward, Metalmark Capital and Waud Capital Partners will represent a majority of the board. Original investors, Northwest Capital Appreciation and RBC Capital Partners will retain minority equity interests in Maxum Petroleum.

    In conjunction with the closing of the $300 million equity investment, Maxum Petroleum also entered into a new and expanded credit facility with its lenders, including PNC Bank, N.A., JPMorgan Chase Bank, N.A., Bank of America, N.A. and Wells Fargo Foothill, LLC.

    Maxum Petroleum, Inc., based in Old Greenwich, CT, 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. Maxum Petroleum is continuing a strategic growth and acquisition plan in the fragmented commercial fuel and lubricant distribution industry, launched in 2004 with the acquisition of Simons Petroleum. To date, Maxum has completed 11 acquisitions of fuel and lubricant marketers and facilities, including Simons Petroleum, Trevco, Hartney, Pecos (including its General Petroleum and Rainier Petroleum subsidiaries), Canyon State Oil, Petroleum Products and Paulson Oil.

    Contact Us With Your News

    JobbersWorld is all about issues impacting lubricant distributors. You are our primary audience and you are the ones we need to hear from. What's on your mind? What issues would you like to see us tackle? And what news would you like others to know about?

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    Please contact us via e-mail at tom_glenn@jobbersworld.com, or direct at 732-494-0405.

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