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JOBBERSWORLD...MARKET INTELLIGENCE FOR INTELLIGENT MARKETERS... The First and Only Independent Newsletter to Focus on Lubricant Distributors.
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| Valvoline Increases Lube Prices |
| Late last week, Valvoline announced it will increase its lubricant prices on average of 9 to 11%. This increase is effective April 18, 2011. Valvoline says the price adjustment is a result of cost increases in base stocks and other raw materials. |
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Commonwealth Oil Ups Price
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Commonwealth Oil Corporation announced a price increase on all their oil-based products from 5-15%, as of March 14, 2011. The main factor in the fluctuations is the gaining strength of the Canadian dollar. Products affected include EDM Fluids, General Purpose Lubricants, Metalworking Fluids, BioComm- Biodegradable Products and Exact Specialty- Food Grade Lubricants that are lube-based. Water-based products remain unaffected.
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| Round Two of 2011 Price Increases |
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Here we are, only three months into the year and we have seen two rounds of lubricant price increases. The first round of increases rolled out in January and February. On average, they bumped prices up by roughly 5 to 8%. This translated to an increase that generally ranged from $0.40 to $0.50 on bulk.
Announcements about a second round of increases started to hit the streets over the past 30 days. Most of these increases are set to take effect in mid-April and range from 8 to 12%. As is usually the case, the increases are said to be due to the higher cost of base oils, additives, packaging, and other market factors.
Interestingly, where major oil companies are typically the first to announce price increases, this is not the case in the last two rounds of increases. Independent lubricant manufacturers were the first to move and the majors followed with increases set to take effect roughly 15 days after the independents.
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