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Jobbers World News
June 7, 2010

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  • BP/Castro Bumps Finished Lube Prices
  • Valvoline Does Not Plan to Officially License dexos.
  • Contact Us With Your News

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    BP/Castro Bumps Finished Lube Prices

    In JobbersWorld's May 20th issue, we reported that all but one of the majors announced price increases for finished lubricants. Well now that's changed. BP/Castrol has since announced a price increase.

    BP/Castrol advised its lubricant marketers on May 27 it will increase the price of its automotive lubricants (commercial and consumer) by $0.36 to $0.60 a gallon (depending on package size). This increase is effective July 12, 2010.


    Valvoline Does Not Plan to Officially License dexos.

    Valvoline says its SynPower MST 5W-30 (a product on the market for several years) already meets all the requirements of General Motors dexos2 and it can be used in all GM passenger car gasoline and diesel vehicles.

    In addition, Valvoline will introduce an engine oil that meets the dexos1 specification for gasoline-only vehicles in the fall of this year. But, Valvoline does not plan to officially license dexos for these products. The reason they don't is reportedly to minimize the cost impact to customers when they move from GF-4 to dexos licensed engine oils.

    As most in the industry are aware, GM charges a very significant royalty fee to license dexos1 and dexos2 engine oil. Understandably, lubricant marketers will likely pass these fees on to the consumer if they license dexos.

    Whereas Valvoline does not plan to officially license dexos, they make it clear that Valvoline stands behind its products and that "the use of the appropriate Valvoline products for GM vehicle's will NOT void the vehicle's warranty."

    So now the big questions. Will other marketers take the same position as Valvoline with regards to dexos? And if they do, what happens to dexos?

    Note: dexos1 and dexos2 are General Motors trademarks.


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