Tractor Hydraulic Fluid – Class Actions Filed

Class-Action Lawsuits Filed Against Tractor Supply Company, Smitty’s Supply, Orscheln, CITGO, and Old World Industries for Sales of “303” Tractor Hydraulic Fluid Products

Three class-action lawsuits have been filed in Cass County, Missouri claiming that the defendants (Tractor Supply Company, Smitty’s Supply, Orscheln, CITGO, and Old World Industries) conduct has harmed consumers by inducing them to purchase and use “303” tractor hydraulic fluid (THF) products, on the false promise that the 303 THF products meet certain specifications and by directly or implicitly representing that the products are safe for use in farm, construction and logging equipment and have certain characteristics and qualities that protect equipment from wear and damage when, in reality, the products do not meet any specifications and cause harm, increased wear and damage to consumers’ equipment.

Each of the defendants answered the complaints and denied any knowledge that representations of the products were false, and denied that they are liable to the plaintiffs in any amount.

Links to the Class Action filings:

ORSCHELN FARM AND HOME AND CITGO
OLD WORLD INDUSTRIES
TRACTOR SUPPLY COMPANY AND SMITTY’S SUPPLY

Warren Distribution Breaks Ground on $13 Million Investment Doubling the Size of its Warehouse in Council Bluffs

Warren Distribution, a privately-owned manufacturer, marketer and distributor of automotive aftermarket products, announced that it broke ground last week on a $13 Million investment that virtually doubled the size of its warehouse in Council Bluffs, Iowa.

The 211,000 square foot addition will be built as an extension to Warren Distribution’s current warehouse and is needed to support the rapid growth it has been experiencing in the past several years.

Quote7162018“We are proud of our long history in Omaha and Council Bluffs, and remain committed to manufacturing, packaging and distributing superior lubricants and performance fluids,” said Bob Schlott, chief executive officer of Warren Distribution. “This expansion affirms our continued collaboration within the region, as well as our desire to provide customers the most comprehensive product experience of its kind.”

Schlott told JobbersWorld that Warren Distribution has reinvested an average of $20 Million a year over the past 5 years, and in 2017 and again in 2018, it will be spending in excess of $30 Million. Recent major investments include the new Houston blend plant that was commissioned earlier this year, a new warehouse in Ohio to support its operation in Glen Dale, WV, new blow molding capacity and conversion of high-speed filling lines across Warren Distribution’s system to accommodate wide-mouth bottles and pressure-sensitive labeling.

About Warren Distribution: Warren Distribution was founded in 1922 as Warren Oil Company by James Schlott, the grandfather of Robert N. Schlott, the current Chairman / CEO. The business began by supplying lubricating oils and related products to the agricultural business in the surrounding area. Such business remains the principle focus of the firm today. Today, three quarters of company revenue is from its own manufactured products (including both private label and house branded). Over the years Warren Distribution has received a number of performance recognition honors from its business partners including a Sears Partner in Progress Award (2000) and twice a WalMart Vendor of the Year Award (2003 and 2005).

Valvoline Completes the Acquisition of Great Canadian Oil Change

With 73 franchised stores in five provinces, Great Canadian Oil Change becomes Valvoline’s largest quick-lube brand in Canada

Valvoline Inc., a leading worldwide supplier of premium branded lubricants and automotive services, today said that it has completed the previously announced acquisition of the business assets of Great Canadian Oil Change Franchising Ltd., the third-largest quick-lube system in Canada.

The acquisition expands Valvoline’s existing quick-lube network to more than 1,200 company-owned and franchised locations in North America.

“Growing and strengthening our quick-lube network through organic store expansion and high-quality acquisitions in both core and new markets is a key growth strategy for the company,” said Sam Mitchell, chief executive officer. “Great Canadian Oil Change, with its established brand and loyal customer base, is Valvoline’s first international quick-lube acquisition and provides us with an excellent opportunity to expand our quick-lube footprint outside the U.S.”

About Valvoline™
Valvoline Inc. is a leading worldwide marketer and supplier of premium branded lubricants and automotive services, with sales in more than 140 countries. Established in 1866, Valvoline’s heritage spans over 150 years, during which it has developed powerful brand recognition across multiple product and service channels. The highly trusted brand ranks as the No. 3 passenger car motor oil brand in the DIY market by volume, the No. 2 quick-lube chain by number of stores in the United States and the No.3 quick-lube chain by number of stores in Canada. The company operates and franchises more than 1,140 Valvoline Instant Oil ChangeSM centers in the U.S. and more than 70 Great Canadian Oil Change locations in Canada. It also markets Valvoline lubricants and automotive chemicals, including the new Valvoline™ Modern Engine Full Synthetic Motor Oil, which is specifically engineered to protect against carbon build-up in Gasoline Direct Injection (GDI), turbo and other engines manufactured since 2012; Valvoline High Mileage with MaxLife technology motor oil for engines over 75,000 miles; Valvoline Synthetic motor oil; and Zerex™ antifreeze.

HollyFrontier to Acquire Red Giant Oil

IN THE NEWS AND ON THE WIRE

HollyFrontier to Acquire Red Giant Oil

HollyFrontier today announced that it has entered into a definitive agreement to acquire Red Giant Oil Company (“Red Giant Oil”). Red Giant Oil, a private family-owned lubricants company founded in 1903, is one of the largest suppliers of locomotive engine oil in North America.

Headquartered in Council Bluffs, Iowa, Red Giant Oil has storage facilities in Idaho, Utah and Wyoming, along with a blending and packaging facility in Texas. Following the acquisition, Red Giant Oil is expected to generate approximately $7.5 million in annual forecasted EBITDA for HollyFrontier.

George Damiris, President and CEO of HollyFrontier, commented, “We are pleased to announce the acquisition of Red Giant Oil, with its outstanding history and brand in the railroad lubricant industry. This transaction demonstrates the continued growth of our lubricant business and brings outstanding value to HollyFrontier.”

This transaction is subject to customary closing conditions and is expected to close in the third quarter of 2018. HollyFrontier was represented by Morgan Lewis & Bockius LLP on this transaction.

About HollyFrontier Corporation:
HollyFrontier Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel, jet fuel and other specialty products. HollyFrontier operates through its subsidiaries a 135,000 barrels per stream day (“bpsd”) refinery located in El Dorado, Kansas, a 125,000 bpsd refinery in Tulsa, Oklahoma, a 100,000 bpsd refinery located in Artesia, New Mexico, a 52,000 bpsd refinery located in Cheyenne, Wyoming and a 45,000 bpsd refinery in Woods Cross, Utah. HollyFrontier markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states. In addition, HollyFrontier, through its subsidiary, owns Petro-Canada Lubricants Inc., whose Mississauga, Ontario facility produces 15,600 barrels per day of base oils and other specialized lubricant products, and owns a 57% interest and a non-economic general partner interest in Holly Energy Partners, L.P.audience.

 

Safety-Kleen Announces Increase

As previously reported in JobbersWorld, Safety-Kleen (Kleen Performance Products) began contacted its U.S. customers on June 15th to announce a price increase on all blended lubricants and grease products of up to 9%. The increase is effective July 16.

In addition to its U.S. price increase, Safety-Kleen began contacting its Canadian customers last week about a similar price increase on all blended lubricants and grease products in Canada, effective August 6.

Price Increase Roundup

Independent lubricant manufacturers are the first and the fastest to move on price in the latest round of increases.

Independent lubricant manufacturers kicked off the most recent round of lubricant price increases with Sinclair’s announcement on May 8th of a 10 to 12% adjustment effective July 1, 2018. By the end of May most independents followed with announced increases. ExxonMobil was the first major to move with an announcement coming on June 1. TOTAL followed on June 8th and a within 26 days all other majors announced price increases. Most of these increases came in the first two weeks of June. A timeline of the recent round of prices increases is shown below.

IncreaseTimeline6262018R3

In all cases, when reasons are given for the price increase, the drivers are said to be increases in the cost of base oils, additives, packaging, and transportation.

In addition to being the first to move, independent lubricant manufacturers also moved more quickly than the majors in this round of price increases. As shown below, whereas there is an average of 16 days from the time independents announced an increase to its effective date, the average distance for the majors is 34 days.

Average price increase (announced) 7.3%
Average time from announcement to effective date 22 days
Independents: Average time from announcement to effective date 16 days
Majors: Average time from announcement to effective date 34 days

 

According to some of the independent lubricant manufacturers JobbersWorld has spoken with, independent lubricant manufacturers are often the first to move and have less lead time then the majors due to their tighter margins. In addition, whereas majors generally purchase base oil under contract, some independents source from the spot market. Consequently, they have to respond relatively fast to maintain margins when base oil prices increase, as seen over the past few months shown below.

CrudePic6262018

In addition to the base oil price increases already seen in 2018, there has been an increase in the price of lubricant additives. The first was announced on May 18th by Afton when it advised its customers that effective June 18, 2018, it will increase prices on all performance additive products from all source points. The price adjustment is said to be in response to higher raw material and transportation costs.

Lubrizol followed on May 29 when it announced a price increase that varied across product areas and specific product families effective July 1, 2018. Lubrizol attributes the increase to the higher cost of raw materials resulting from robust demand and continuing consolidation and closure of capacity. In addition, the price adjustments are said to be necessary due to significant increases in transportation costs.

It should be noted that the higher than typical number of lubricant price increases we have seen so far in 2018 are reflected in the comparatively steep ramp up shown below in the Producer Price Index (PPI) for Petroleum Lubricating Oils and Grease Manufacturing (NAICS 324191). The PPI is an index published by the Bureau of Labor Statistics that measures the average change in the selling prices received by domestic producers for their output over time.

ProducerPriceIndexChart

Recently Announced Lubricant Price Increases

Company Announced Date Effective Date Increase
Sinclair Lubricants 5/8/2018 7/1/2018 10 to 12%
Sunoco 5/16/2018 6/16/2018 4 to 6%
Advanced Lubrication Specialties 5/16/2018 6/16/2018 4 to 6%
CAM2 5/18/2018 6/16/2018 4 to 9%
Smitty’s Supply 5/18/2018 6/16/2018 4 to 9%
U.S. Lubricants, Commerce, CA 5/18/2018 6/17/2018 $0.40/gal lubricants
$0.05/lb greases
Axel Royal 5/21/2018 6/24/2018 5%
Chemlube 5/22/2018 6/11/2018 5 to 9%
Maverick Performance Products 5/22/2018 6/18/2018 4 to 8%
Allegheny Petroleum Products 5/23/2018 6/18/2018 6 to 8% on bulk, additional 2% on drums and totes
Warren Distribution 5/23/2018 6/25/2018 4 to 8%
PennStar 5/23/2018 6/15/2018 6 to 10%
Martin Lubricants 5/23/2018 6/22/2018 5 to 9%
Old World Industries 5/24/2018 6/30/2018 4 to 9%
ExxonMobil 6/1/2018 7/1/2018 up to 9%
TOTAL Specialties USA 6/8/2018 7/1/2018 4 to 6%
Nu-Tier Brands/Gulf/ECOSE 6/11/2018 7/13/2018 6 to 8%
Shell 6/13/2018 7/16/2018 up to 10%
Reliance Fluid Technologies 6/13/2018 7/16/2018 4 to 8%
Lubriplate 6/13/2018 8/13/2018 Mineral oil-based Lubricants by 7%, Synthetic/Long-life lubricants by 4%
Chevron 6/14/2018 8/1/2018 up to 9%
Safety-Kleen 6/15/2018 7/16/2018 up to 9%
Valvoline 6/19/2018 8/1/2018 up to 9%
Phillips 66 6/22/2018 7/23/2018 up to 9%
Calumet Branded Products 6/25/2018 7/25/2018 up to 10%
Castrol North America 6/26/2018 8/6/2018 up to 9%

CLICK FOR COMPLETE LIST OF LUBRICANT PRICE INCREASES IN 2018 ROUND 1

CLICK FOR COMPLETE LIST OF LUBRICANT PRICE INCREASES IN 2018 ROUND 2

Click on the Timeline Below to See All Effective Increase Dates in 2018

TimelineLong6262018

Castrol North America and Phillips 66 Announce Price Increases

IN THE NEWS AND ON THE WIRE

ExxonMobil mulls ‘multi-billion’ dollar expansion at Singapore refinery
“The expansion would enable ExxonMobil to introduce a new high-viscosity base stock to the market”
Ingevity names IMCD as distributor for lubricant products in Brazil
Univar Extends Agreement to Distribute Castrol Oil Company’s Industrial Lubricants and Greases

Castrol North America and Phillips 66 Announce Price Increases

Castrol North America announced a price increase today of up to 9% for Castrol and BP branded lubricants. The increase applies to certain conventional, synthetic blend and full synthetic passenger car and heavy-duty lubricants and is effective August 6, 2018. Castrol attributes the adjustment to the continuous rising cost of base oils, additives, packaging and transportation. The increase does not apply to Castrol or BP industrial products at this time.


Phillips 66 announced that effective July 23, 2018, it will adjust finished lubricant prices by up to 9%. Phillips 66 says the increase is due in part to increasing costs in the production and delivery of its products.

Scroll to the bottom of the page for a complete list of recent price increases reported by JobbersWorld.

Price Increase Roundup

Independent lubricant manufacturers are the first and the fastest to move on price in the latest round of increases.

Independent lubricant manufacturers kicked off the most recent round of lubricant price increases with Sinclair’s announcement on May 8th of a 10 to 12% adjustment effective July 1, 2018. By the end of May most independents followed with announced increases. ExxonMobil was the first major to move with an announcement coming on June 1. TOTAL followed on June 8th and a within 26 days all other majors announced price increases. Most of these increases came in the first two weeks of June. A timeline of the recent round of prices increases is shown below.

IncreaseTimeline6262018R3

In all cases, when reasons are given for the price increase, the drivers are said to be increases in the cost of base oils, additives, packaging, and transportation.

In addition to being the first to move, independent lubricant manufacturers also moved more quickly than the majors in this round of price increases. As shown below, whereas there is an average of 16 days from the time independents announced an increase to its effective date, the average distance for the majors is 34 days.

Average price increase (announced) 7.3%
Average time from announcement to effective date 22 days
Independents: Average time from announcement to effective date 16 days
Majors: Average time from announcement to effective date 34 days

 

According to some of the independent lubricant manufacturers JobbersWorld has spoken with, independent lubricant manufacturers are often the first to move and have less lead time then the majors due to their tighter margins. In addition, whereas majors generally purchase base oil under contract, some independents source from the spot market. Consequently, they have to respond relatively fast to maintain margins when base oil prices increase, as seen over the past few months shown below.

CrudePic6262018

In addition to the base oil price increases already seen in 2018, there has been an increase in the price of lubricant additives. The first was announced on May 18th by Afton when it advised its customers that effective June 18, 2018, it will increase prices on all performance additive products from all source points. The price adjustment is said to be in response to higher raw material and transportation costs.

Lubrizol followed on May 29 when it announced a price increase that varied across product areas and specific product families effective July 1, 2018. Lubrizol attributes the increase to the higher cost of raw materials resulting from robust demand and continuing consolidation and closure of capacity. In addition, the price adjustments are said to be necessary due to significant increases in transportation costs.

It should be noted that the higher than typical number of lubricant price increases we have seen so far in 2018 are reflected in the comparatively steep ramp up shown below in the Producer Price Index (PPI) for Petroleum Lubricating Oils and Grease Manufacturing (NAICS 324191). The PPI is an index published by the Bureau of Labor Statistics that measures the average change in the selling prices received by domestic producers for their output over time.

ProducerPriceIndexChart

Recently Announced Lubricant Price Increases

Company Announced Date Effective Date Increase
Sinclair Lubricants 5/8/2018 7/1/2018 10 to 12%
Sunoco 5/16/2018 6/16/2018 4 to 6%
Advanced Lubrication Specialties 5/16/2018 6/16/2018 4 to 6%
CAM2 5/18/2018 6/16/2018 4 to 9%
Smitty’s Supply 5/18/2018 6/16/2018 4 to 9%
U.S. Lubricants, Commerce, CA 5/18/2018 6/17/2018 $0.40/gal lubricants
$0.05/lb greases
Axel Royal 5/21/2018 6/24/2018 5%
Chemlube 5/22/2018 6/11/2018 5 to 9%
Maverick Performance Products 5/22/2018 6/18/2018 4 to 8%
Allegheny Petroleum Products 5/23/2018 6/18/2018 6 to 8% on bulk, additional 2% on drums and totes
Warren Distribution 5/23/2018 6/25/2018 4 to 8%
PennStar 5/23/2018 6/15/2018 6 to 10%
Martin Lubricants 5/23/2018 6/22/2018 5 to 9%
Old World Industries 5/24/2018 6/30/2018 4 to 9%
ExxonMobil 6/1/2018 7/1/2018 up to 9%
TOTAL Specialties USA 6/8/2018 7/1/2018 4 to 6%
Nu-Tier Brands/Gulf/ECOSE 6/11/2018 7/13/2018 6 to 8%
Shell 6/13/2018 7/16/2018 up to 10%
Reliance Fluid Technologies 6/13/2018 7/16/2018 4 to 8%
Lubriplate 6/13/2018 8/13/2018 Mineral oil-based Lubricants by 7%, Synthetic/Long-life lubricants by 4%
Chevron 6/14/2018 8/1/2018 up to 9%
Safety-Kleen 6/15/2018 7/16/2018 up to 9%
Valvoline 6/19/2018 8/1/2018 up to 9%
Phillips 66 6/22/2018 7/23/2018 up to 9%
Calumet Branded Products 6/25/2018 7/25/2018 up to 10%
Castrol North America 6/26/2018 8/6/2018 up to 9%

CLICK FOR COMPLETE LIST OF LUBRICANT PRICE INCREASES IN 2018 ROUND 1

CLICK FOR COMPLETE LIST OF LUBRICANT PRICE INCREASES IN 2018 ROUND 2

Click on the Timeline Below to See All Effective Increase Dates in 2018

TimelineLong6262018

Calumet Announces Increase, Valvoline Introduces new HDEO

Calumet Announces Price Increase

Calumet Branded Products announced today that effective July 25th, 2018, Calumet Branded Products will implement a price increase of up to 10% on finished lubricants. Calumet attributes the adjustments to increasing costs of raw materials used in the production and delivery of its products.

Scroll to bottom of page for complete list of recent price increases reported by JobbersWorld.

Valvoline Unveils its Premium Blue One Solution™

One Solution has become the first engine oil approved to meet Cummins Engine Spec (CES 20092) that allows for extended drains in natural gas engines.

As previously communicated in Valvoline’s April 2018 Product Information Bulletin, a new mobile natural gas engine oil performance specification has been introduced for stoichiometric combustion Cummins Westport mid-range and heavy-duty engines. The new specification-Cummins Engineering Standard (CES) 20092-provides significantly improved oxidation and thermal stability compared to previous natural gas oils.

ValvolinePremiumBlue9200With today’s announcement, Valvoline says its new “Premium Blue One Solution™” has become the first engine oil approved to meet Cummins Engine Spec (CES 20092) that allows for extended drains in natural gas engines.

According to Valvoline, with the use of CES 20092 compliant oils, such as Valvoline™ Premium Blue One Solution™, Cummins Westport has recommended increasing oil drain intervals for some engines and applications. Applicable engines are the Cummins Westport ISX12 G, ISX12N, ISL G, and L9N natural gas engines.

  • ISX12 G / ISX12N: The recommended interval is 40,000 mi (64,000 km) for vehicles with average road speeds greater than 25 mph (40 kph).

Operators of vehicles with average road speeds less than 25 mph (40 kph), should consult the appropriate Operation and Maintenance manual for recommended oil drain intervals.

  • ISL G / L9N: The recommended interval is 1,000 hrs.

All Cummins Westport natural gas engines using stoichiometric combustion are compatible with CES 20092 oils. These platforms will benefit from a transition to CES 20092 oils, which require a more modern oil additive system than previously used for CES 20074 or CES 20085 oils. The new specification requires a much stronger antioxidant combination to provide protection at the high temperatures experienced in modern natural gas engines. The range of allowable ash levels for CES 20092 oils (0.7-0.9%) is similar to the CES 20085 specification. Lean burn legacy engines should continue to use CES 20074 oils until further notice.

Click for more


Recently Announced Lubricant Price Increases

Company Announced Date Effective Date Increase
Sinclair Lubricants 5/8/2018 7/1/2018 10 to 12%
Sunoco 5/16/2018 6/16/2018 4 to 6%
Advanced Lubrication Specialties 5/16/2018 6/16/2018 4 to 6%
CAM2 5/18/2018 6/16/2018 4 to 9%
Smitty’s Supply 5/18/2018 6/16/2018 4 to 9%
U.S. Lubricants, Commerce, CA 5/18/2018 6/17/2018 $0.40/gal lubricants
$0.05/lb greases
Axel Royal 5/21/2018 6/24/2018 5%
Chemlube 5/22/2018 6/11/2018 5 to 9%
Maverick Performance Products 5/22/2018 6/18/2018 4 to 8%
Allegheny Petroleum Products 5/23/2018 6/18/2018 6 to 8% on bulk, additional 2% on drums and totes
Warren Distribution 5/23/2018 6/25/2018 4 to 8%
PennStar 5/23/2018 6/15/2018 6 to 10%
Martin Lubricants 5/23/2018 6/22/2018 5 to 9%
Old World Industries 5/24/2018 6/30/2018 4 to 9%
ExxonMobil 6/1/2018 7/1/2018 up to 9%
TOTAL Specialties USA 6/8/2018 7/1/2018 4 to 6%
Nu-Tier Brands/Gulf/ECOSE 6/11/2018 7/13/2018 6 to 8%
Shell 6/13/2018 7/16/2018 up to 10%
Reliance Fluid Technologies 6/13/2018 7/16/2018 4 to 8%
Lubriplate 6/13/2018 8/13/2018 Mineral oil-based Lubricants by 7%, Synthetic/Long-life lubricants by 4%
Chevron 6/14/2018 8/1/2018 up to 9%
Safety-Kleen 6/15/2018 7/16/2018 up to 9%
Valvoline 6/19/2018 8/1/2018 up to 9%
Calumet Branded Products 6/25/2018 7/25/2018 up to 10%

IncreaseTimeline6212018R3

CLICK FOR COMPLETE LIST OF LUBRICANT PRICE INCREASES IN 2018 ROUND 1

CLICK FOR COMPLETE LIST OF LUBRICANT PRICE INCREASES IN 2018 ROUND 2

Click on the Timeline Below to See All Effective Increase Dates in 2018

IncreaseLong6212018

 

Detroit Responds to Shell’s Claims, and ELM announces “NO PRICE INCREASE”

Detroit Diesel Responds to Shell’s Claims

In a letter sent yesterday to its vendors, suppliers, customers, and a number of organizations, and others, Detroit Diesel Corporation released a position statement regarding “Shell’s Mobil Competitive Claim.”

The letter is directed at Shell’s advertising campaign where Shell claims that a sample of ExxonMobil Delvac 1300 Super 15W-40 it tested does not meet API CK-4 and Detroit Diesel (93K222) engine oil specifications. Specific to the claim, Shell says the sample did not pass the Volvo T-13 engine test.

In response to the Shell’s claim, Detroit Diesel’s position statement says that “Mobil Delvac 1300 Super 15W-40 met all of the requirements to receive an API CK-4 license” and “all the requirements for inclusion on Detroit Diesel’s 93K222 approved engine oil list.” Further, “Inclusion on Detroit Diesel’s 93K222 approved engine oil list is at the sole discretion of Detroit Diesel Corporation” and that “The Volvo T13 engine test data for Mobil Delvac 1300 Super 15W-40 met the requirements for API CK-4 and DDC DFS 93K222.”

In addition to these points, the statement says, “The Volvo T13 engine test is approved by ASTM, API, ACC, EMA, DDC, and other organizations” and “The precision statement for the Volvo T13 engine test is available in ASTM D 8048.”

Detroit Diesel’s position statement concludes with:

“Any and all public claims that a Detroit Diesel-approved product does not meet Detroit Diesel specifications shall only be communicated by Detroit Diesel Corporation.”

From what JobbersWorld is hearing from those who received the letter, the position statement makes it clear that Detroit Diesel stands by its approval of Mobil Delvac 1300 Super 15W-40. Further, the letter makes it clear that Detroit Diesel calls the shots on its product approvals, not lubricant marketers.

Related stories and video:

ExxonMobil Responds to Shell’s Claim
Shell Amps up the Volume about its Claim
Shell Claims Shell Rotella Meets The Standards While A Leading Diesel Engine Oil Does Not
Not All Oils Meet Industry Standards
– YouTube – (Video 1 and Video 2)

New Tariffs Mean no Price Increase for ELM Biobased Greases

In what clearly is a change from much of the news JobbersWorld has been publishing in 2018 about industry wide price increases, Environmental Lubricants Manufacturing, Inc. (ELM), a leading biobased lubricants company announced that prices will not rise in some of its key grease products.

LouAHonary

Dr. Lou A. Honary, Chairman and President Professor-Director Emeritus, University of Northern Iowa NABL Center

According to ELM President Dr. Lou Honary “… since the beginning of 2018 we have seen three waves of price increases by major suppliers for base oils, additives and for finished lubricants and greases. We too are impacted by increases in the price of additives, but we have also seen our base oil prices stabilize and decrease much to the disappointment of our farmers. Depressed agriculture commodity prices combined with continuous improvement in our microwave-based grease processing, we are pleased to inform our customers that not only are we not following the crowd and increasing our prices, in the case of biobased rail curve, wire rope, drill rod grease and food grade greases, we are seeing some price reductions.”

ELM production manager Saeed Soleimani stated, “increase in sales volumes of VGP certified biobased wire rope grease, barium grease-substitute biobased drill rod grease, and our lithium-based rail curve greases have helped us to further increase our purchasing power.” ELM has been private labeling biobased greases for several US and international companies. Honary said “we have long recognized that our way to the broader market is through cooperation with successful mineral oil lubricant marketers and manufacturers. We are signing on more capable private labelers who find their margins continue to degrade in mineral oil-based products while biobased products offer a new high margin opportunity.”

Another Major Moves: Add Valvoline to the List

Another Major Moves: Add Valvoline to the List

Valvoline advised its customers that it will implement a price increase on its branded lubricant products up to 9%. The price movement is effective August 1, 2018. Valvoline attributes the price adjustment to the rising raw material costs associated with manufacturing and distribution of its products.

See below for complete list of round 3 price increases in 2018.

Shell Amps up the Volume about its Claim

 As reported in JobbersWorld last Friday, Shell went public with a claim that a sample of Mobil Delvac 1300 Super 15W-40 CK-4 Shell examined “does not meet the minimum API CK-4 requirements or the Volvo/Mack or Cummins OEM requirements.”   

While the claim was initially made public on Shell’s website in release accompanied by a “Full Report” displaying graphics illustrating a comparison of test results on Volvo T-13 for samples of Rotella and Delvac, Shell’s website now includes a video (click to see video) where Shell says “Through this testing, we discovered that a sample of Mobil Delvac 1300 Super 15W-40 not only failed the requirements of API CK-4, but also the Volvo VDS 4.5, MACK EOS 4.5 and the Cummins CES 20086 performance standards.”  Videos are also now appearing on YouTube (see link 1 and link 2).

Shell marketers were made aware of the claim in advance of the public announcement and they along with select customers were invited to join a Shell webcast about the claim on Wednesday of this week. From what JobbersWorld has learned, the webcast stayed on script to the talking points made public. Further, marketers were cautioned about the sensitivity of the claim and to avoid any disparaging statements toward ExxonMobil. At the same time, news about the claim, including the video, is said to be part of Shell’s efforts to get the word out to customers and prospects.

While you can be sure Shell and its marketers are already pounding the pavement to capture new business with Shell’s claim in hand, some others question the veracity of the claim and believe ExxonMobil will take swift legal action to challenge it and minimize damages. To this point, the comment of one reader expresses the thoughts of several others heard by JobbersWorld.

It is inconceivable that ExxonMobil would not have obtained an approval and completely followed the rules for industry testing. Evidence of this would be in the documentation for the API claims. Further, ExxonMobil would have to apply for and review the data with various OEM’s to secure approvals for Volvo VDS 4.5 which is more severe than API CK-4/FA-4.  With that, the OEMs would have to accept the results, which according to ExxonMobil, they did, and stand by it.”

Another comment coming from someone with a rich history in the business says:

“Not something I would want to take sides on, but from my experience, one test does not ensure good or bad performance. Although, no one ever questions when a product passes or yields great results, many questions are asked when one fails. I suspect we will hear more about these questions and the answers if ExxonMobil challenges Shell’s claim.” 

Although JobbersWorld received other comments about Shell’s claim, understandably, all who commented did so “off the record.”

NOTE: ExxonMobil reached out to JobbersWorld on Tuesday of this week with the following statement regarding Shell’s claim:

“ExxonMobil stands by the quality of our products and has re-affirmed for our distributors and customers that Mobil Delvac 1300 Super 15W-40 carries valid OEM approvals and API CK-4 licensing. In addition, Volvo has confirmed that the Volvo VDS-4.5 and Mack EOS-4.5 approvals for Mobil Delvac 1300 Super 15W-40 remain intact based on the fully compliant data set originally submitted, which includes passing the Volvo T-13 engine test results for oxidation and viscosity increase at the more stringent Volvo limits. Beyond valid API licensure and OEM approvals, Mobil Delvac 1300 Super and Mobil Delvac Super FE have proven on-road performance in ExxonMobil controlled field trials utilizing 69 representative trucks accumulating 23 million miles. ExxonMobil cannot address the specifics of the test results Shell produced, because we do not have the data, but we are conducting a thorough investigation.”


Round 3 Lubricant Price Increase Summary

Company Announced Date Effective Date Increase
Sinclair Lubricants 5/8/2018 7/1/2018 10 to 12%
Sunoco 5/16/2018 6/16/2018 4 to 6%
Advanced Lubrication Specialties 5/16/2018 6/16/2018 4 to 6%
CAM2 5/18/2018 6/16/2018 4 to 9%
Smitty’s Supply 5/18/2018 6/16/2018 4 to 9%
U.S. Lubricants, Commerce, CA 5/18/2018 6/17/2018 $0.40/gal lubricants
$0.05/lb greases
Axel Royal 5/21/2018 6/24/2018 5%
Chemlube 5/22/2018 6/11/2018 5 to 9%
Maverick Performance Products 5/22/2018 6/18/2018 4 to 8%
Allegheny Petroleum Products 5/23/2018 6/18/2018 6 to 8% on bulk, additional 2% on drums and totes
Warren Distribution 5/23/2018 6/25/2018 4 to 8%
PennStar 5/23/2018 6/15/2018 6 to 10%
Martin Lubricants 5/23/2018 6/22/2018 5 to 9%
Old World Industries 5/24/2018 6/30/2018 4 to 9%
ExxonMobil 6/1/2018 7/1/2018 up to 9%
TOTAL Specialties USA 6/8/2018 7/1/2018 4 to 6%
Nu-Tier Brands/Gulf/ECOSE 6/11/2018 7/13/2018 6 to 8%
Shell 6/13/2018 7/16/2018 up to 10%
Reliance Fluid Technologies 6/13/2018 7/16/2018 4 to 8%
Chevron 6/14/2018 8/1/2018 up to 9%
Safety-Kleen 6/15/2018 7/16/2018 up to 9%
Valvoline 6/19/2018 8/1/2018 up to 9%

IncreaseTimeline6212018R3

CLICK FOR COMPLETE LIST OF LUBRICANT PRICE INCREASES IN 2018 ROUND 1

CLICK FOR COMPLETE LIST OF LUBRICANT PRICE INCREASES IN 2018 ROUND 2

Click on the Timeline Below to See All Effective Increase Dates in 2018

IncreaseLong6212018

 

EXXONMOBIL RESPONDS TO SHELL’S CLAIM

ExxonMobil Responds

ExxonMobil reached out to JobbersWorld this afternoon with a statement regarding a claim JobbersWorld reported on last Friday; a claim made by Shell saying that a sample of Mobil Delvac 1300 15W-40 CK-4 Shell examined “does not meet the minimum API CK-4 requirements or the Volvo/Mack or Cummins OEM requirements.” Shell Claims Shell Rotella Meets The Standards While A Leading Diesel Engine Oil Does Not

With regards to Shell’s claim, ExxonMobil says:

“ExxonMobil stands by the quality of our products and has re-affirmed for our distributors and customers that Mobil Delvac 1300 Super 15W-40 carries valid OEM approvals and API CK-4 licensing. In addition, Volvo has confirmed that the Volvo VDS-4.5 and Mack EOS-4.5 approvals for Mobil Delvac 1300 Super 15W-40 remain intact based on the fully compliant data set originally submitted, which includes passing the Volvo T-13 engine test results for oxidation and viscosity increase at the more stringent Volvo limits. Beyond valid API licensure and OEM approvals, Mobil Delvac 1300 Super and Mobil Delvac Super FE have proven on-road performance in ExxonMobil controlled field trials utilizing 69 representative trucks accumulating 23 million miles. ExxonMobil cannot address the specifics of the test results Shell produced, because we do not have the data, but we are conducting a thorough investigation.”

Safety-Kleen Announces Price Increase

Safety-Kleen Announces Price Increase

Safety-Kleen (Kleen Performance Products) announced a price increase on all blended lubricants and greases up to 9%. The price movement is effective July 16, 2018.

Round 3 Lubricant Price Increase Summary

Company Announced Date Effective Date Increase
Sinclair Lubricants 5/8/2018 7/1/2018 10 to 12%
Sunoco 5/16/2018 6/16/2018 4 to 6%
Advanced Lubrication Specialties 5/16/2018 6/16/2018 4 to 6%
CAM2 5/18/2018 6/16/2018 4 to 9%
Smitty’s Supply 5/18/2018 6/16/2018 4 to 9%
U.S. Lubricants, Commerce, CA 5/18/2018 6/17/2018 $0.40/gal lubricants
$0.05/lb greases
Axel Royal 5/21/2018 6/24/2018 5%
Chemlube 5/22/2018 6/11/2018 5 to 9%
Maverick Performance Products 5/22/2018 6/18/2018 4 to 8%
Allegheny Petroleum Products 5/23/2018 6/18/2018 6 to 8% on bulk, additional 2% on drums and totes
Warren Distribution 5/23/2018 6/25/2018 4 to 8%
PennStar 5/23/2018 6/15/2018 6 to 10%
Martin Lubricants 5/23/2018 6/22/2018 5 to 9%
Old World Industries 5/24/2018 6/30/2018 4 to 9%
ExxonMobil 6/1/2018 7/1/2018 up to 9%
TOTAL Specialties USA 6/8/2018 7/1/2018 4 to 6%
Nu-Tier Brands/Gulf/ECOSE 6/11/2018 7/13/2018 6 to 8%
Shell 6/13/2018 7/16/2018 up to 10%
Reliance Fluid Technologies 6/13/2018 7/16/2018 4 to 8%
Chevron 6/14/2018 8/1/2018 up to 9%
Safety-Kleen 6/15/2018 7/16/2018 up to 9%


IncreaseTimeline6192018R3

CLICK FOR COMPLETE LIST OF LUBRICANT PRICE INCREASES IN 2018 ROUND 1

CLICK FOR COMPLETE LIST OF LUBRICANT PRICE INCREASES IN 2018 ROUND 2

Click on the Timeline Below to See All Effective Increase Dates in 2018

TimelineLong6192018


Are Lubricant Price Increases Unique?

With the number of price increases we have seen so far in finished lubricants this year, one has to wonder if the frequency of these increases are unique to our industry or is it occurring in other industries as well. The short answer is that, with some exceptions, similar dynamics are seen in a wide range of consumer products, and what we are witnessing in the lubricants business today is not particularly exceptional. Evidence of this can be seen in the Consumer Price Index (CPI).

The CPI is an index reported by the US Bureau of Labor Statistics (BLS) that measures changes in prices over time for a market basket of selected products and services. Before seasonal adjustment, the index rose by 2.5% over the past twelve months. Whereas JobbersWorld will peel a few layers off the CPI and layer in data from the Producer Price Index in our next issue to reveal more, it’s interesting to start with a look back at the price of products over the last 50 years. As shown, it’s clear that although the price of conventional motor oils on retail shelves have certainly increased, the increase over time is not exceptional. In fact, the percent change in retail price of conventional motor oils are on par with other petroleum product and well below crude oil. It’s also clear that while many complain about increases, there is one line item on the table below where big increases would be welcomed.

Coming up in the next issue of JobbersWorld… Making dollars and sense of the CPI and PPI in the lubricants business.

Year
Item 1968 2018-a % change
 Federal debt ($billion) 348 21,099 5,962.9
Crude oil, bbl 3.18 66.00 1,975.5
 Pack of Cigarettes 0.33 6.37 1,830.3
 Diesel Fuel ($/gal) 0.31 3.28 958.1
 Ford Mustang 2,578 26,580 931.0
Quart of Conventional Motor Oil 0.39 3.97 917.9
 First class stamp 0.05 0.50 900.0
 Price of a house 25,400 238,700 839.8
 Cup of Coffee 0.15 1.38 820.0
 Gasoline ($/gal) 0.34 2.94 764.7
 Gallon Milk 1.07 3.22 200.9
 Dozen eggs 0.53 1.20 126.4

a- As of June 15, 2018

Chevron Announces Price Increase for Lubes and Greases

 

Chevron is the Third Major to Announce a Price Increase in Round Three for 2018, and add Reliance Fluid Technologies to the List of Independent Blenders Announcing a Price Adjustment

Chevron announced a general price increase of all lubricating oils and greases up to 9%. The price movement is effective August 1, 2018. Chevron attributes the increase to the higher cost of raw materials impacting the manufacturing of its products.


Reliance Fluid Technologies (RFT) announced it will implement a price increase of 4 to 8% a gallon on its bulk and packaged lubricants. The increase is effective July 16, 2018. RFT says the increase is due to the rising costs of base oil, additives and freight.


BREAKING NEWS – Shell Claims Shell Rotella Meets The Standards While A Leading Diesel Engine Oil Does Not

Shell announced a bold and what you can be sure will be a contentious finding. According to Shell, a sample of Mobil Delvac 1300 Super 15W-40 it examined does not meet API CK-4 performance standards or the more stringent OEM standards claimed for the product.

Shell says, ” When you buy a Shell Rotella® heavy duty engine oil, you rely on our brand to deliver on our promise of protection for your vehicle. That promise is demonstrated by the approvals and specifications that are printed on the label of each Shell Rotella® product.

Shell spends countless hours of work, not only in the laboratory, but also in the real world, to make sure that trust is deserved. Shell also routinely collects and tests competitor oils (competitor benchmarking) to compare our product’s performance against the competition. Recently, Shell ran the industry standard Volvo T-13 test at an independent testing facility using Mobil Delvac 1300 Super 15W-40. The sample was sent blind to eliminate bias.

The Volvo T-13 is a grueling 360-hour, severe high temperature oil oxidation test. The test pushes oil marketers to develop engine oils that are resilient in challenging operating environments of newer, more fuel-efficient engines. The Volvo T-13 is a key barrier against engine oils with inadequate oxidation protection.

The test limits for the Volvo T-13 focus on two standard measurements: Kinematic Viscosity at 40oC (KV 40) in the last 60 hours of the test (ASTM D445) and oxidation by infra-red spectroscopy. These limits are important as they represent the baseline for API CK-4 limits and the more stringent OEM limits. This new test was devised to set the bar for the API CK-4 category of engine oil, designed to include advanced oxidation stability and shear stability.

Oxidation stability of an engine oil refers to its capability to resist thermal and chemical breakdown during engine operation. It is a key indicator of an engine oil’s ability to protect the engine itself and engine hardware.

Using an engine oil that lacks oxidation stability can lead to several engine maintenance and performance issues, such as:

  • Deposit build up on engine parts that can lead to reduced oil drain intervals and shorter engine life
  • More corrosion of engine parts that can lead to greater wear and potentially damage your engine, which could lead to shorter engine life
  • Higher viscosity of oil that can lead to reduced engine efficiency and fuel economy
    End Quote

Shell provided its distributors with the results of the Volvo T-13 tests in support of its claim and according to that data, the sample of Mobil Delvac 1300 15W-40 CK-4 Shell examined “does not meet the minimum API CK-4 requirements or the Volvo/Mack or Cummins OEM requirements.”

CLICK TO SEE DATA

Round 3 Lubricant Price Increase Summary

Company Announced Date Effective Date Increase
Sinclair Lubricants 5/8/2018 7/1/2018 10 to 12%
Sunoco 5/16/2018 6/16/2018 4 to 6%
Advanced Lubrication Specialties 5/16/2018 6/16/2018 4 to 6%
CAM2 5/18/2018 6/16/2018 4 to 9%
Smitty’s Supply 5/18/2018 6/16/2018 4 to 9%
U.S. Lubricants, Commerce, CA 5/18/2018 6/17/2018 $0.40/gal lubricants
$0.05/lb greases
Axel Royal 5/21/2018 6/24/2018 5%
Chemlube 5/22/2018 6/11/2018 5 to 9%
Maverick Performance Products 5/22/2018 6/18/2018 4 to 8%
Allegheny Petroleum Products 5/23/2018 6/18/2018 6 to 8% on bulk, additional 2% on drums and totes
Warren Distribution 5/23/2018 6/25/2018 4 to 8%
PennStar 5/23/2018 6/15/2018 6 to 10%
Old World Industries 5/24/2018 6/30/2018 4 to 9%
ExxonMobil 6/1/2018 7/1/2018 up to 9%
TOTAL Specialties USA 6/8/2018 7/1/2018 4 to 6%
Nu-Tier Brands/Gulf/ECOSE 6/11/2018 7/13/2018 6 to 8%
Shell 6/13/2018 7/16/2018 up to 10%
Reliance Fluid Technologies 6/13/2018 7/16/2018 4 to 8%
Chevron 6/14/2018 8/1/2018 up to 9%


IncreaseTimeline6182018R3

CLICK FOR COMPLETE LIST OF LUBRICANT PRICE INCREASES IN 2018 ROUND 1

CLICK FOR COMPLETE LIST OF LUBRICANT PRICE INCREASES IN 2018 ROUND 2

Click on the Timeline Below to See All Effective Increase Dates in 2018

IncreaseLong6182018

BREAKING NEWS – Shell Claims Shell Rotella Meets The Standards While A Leading Diesel Engine Oil Does Not

BREAKING NEWS – Shell Claims Shell Rotella Meets The Standards While A Leading Diesel Engine Oil Does Not

Shell announced a bold and what you can be sure will be a contentious finding. According to Shell, a sample of Mobil Delvac 1300 Super 15W-40 it examined does not meet API CK-4 performance standards or the more stringent OEM standards claimed for the product.

Shell says, ” When you buy a Shell Rotella® heavy duty engine oil, you rely on our brand to deliver on our promise of protection for your vehicle. That promise is demonstrated by the approvals and specifications that are printed on the label of each Shell Rotella® product.

Shell spends countless hours of work, not only in the laboratory, but also in the real world, to make sure that trust is deserved. Shell also routinely collects and tests competitor oils (competitor benchmarking) to compare our product’s performance against the competition. Recently, Shell ran the industry standard Volvo T-13 test at an independent testing facility using Mobil Delvac 1300 Super 15W-40. The sample was sent blind to eliminate bias.

The Volvo T-13 is a grueling 360-hour, severe high temperature oil oxidation test. The test pushes oil marketers to develop engine oils that are resilient in challenging operating environments of newer, more fuel-efficient engines. The Volvo T-13 is a key barrier against engine oils with inadequate oxidation protection.

The test limits for the Volvo T-13 focus on two standard measurements: Kinematic Viscosity at 40oC (KV 40) in the last 60 hours of the test (ASTM D445) and oxidation by infra-red spectroscopy. These limits are important as they represent the baseline for API CK-4 limits and the more stringent OEM limits. This new test was devised to set the bar for the API CK-4 category of engine oil, designed to include advanced oxidation stability and shear stability.

Oxidation stability of an engine oil refers to its capability to resist thermal and chemical breakdown during engine operation. It is a key indicator of an engine oil’s ability to protect the engine itself and engine hardware.

Using an engine oil that lacks oxidation stability can lead to several engine maintenance and performance issues, such as:

  • Deposit build up on engine parts that can lead to reduced oil drain intervals and shorter engine life
  • More corrosion of engine parts that can lead to greater wear and potentially damage your engine, which could lead to shorter engine life
  • Higher viscosity of oil that can lead to reduced engine efficiency and fuel economy
    End Quote

Shell provided its distributors with the results of the Volvo T-13 tests in support of its claim and according to that data, the sample of Mobil Delvac 1300 15W-40 CK-4 Shell examined “does not meet the minimum API CK-4 requirements or the Volvo/Mack or Cummins OEM requirements.”

CLICK TO SEE DATA


Another Major Moves, and More

Shell Oil Products US (SOPUS) announced it will implement a price increase of up to 10% on its finished lubricants. The increase is effective July 16, 2018. Shell says the increase is due in part to increasing raw material and delivery costs.

Shell is the second major to move in the third round of lubricant price increases in 2018. As reported in the June 5th issue of JobbersWorld, ExxonMobil was the first major to announce a price increase in the third round when it advised its marketers of an increase of up to 10% on finished lubricants, effective July 1, 2018.


Lubriplate Lubricants Company advised its marketers of a price increase on all LUBRIPLATE Brand and FISKE Brand Lubricants. Lubricants based on mineral oil will increase by 7% and synthetic/long-life lubricants will be adjusted up by 4%. The effective date of the increase is August 13, 2018. Lubriplate attributes the increase to the higher cost of base oils, additives, and packaging. The price of SYNXTREME HT MAX, L0331-002 will not be increased.

Round 3 Lubricant Price Increase Summary

Company Announced Date Effective Date Increase
Sinclair Lubricants 5/8/2018 7/1/2018 10 to 12%
Sunoco 5/16/2018 6/16/2018 4 to 6%
Advanced Lubrication Specialties 5/16/2018 6/16/2018 4 to 6%
CAM2 5/18/2018 6/16/2018 4 to 9%
Smitty’s Supply 5/18/2018 6/16/2018 4 to 9%
U.S. Lubricants, Commerce, CA 5/18/2018 6/17/2018 $0.40/gal lubricants
$0.05/lb greases
Axel Royal 5/21/2018 6/24/2018 5%
Chemlube 5/22/2018 6/11/2018 5 to 9%
Maverick Performance Products 5/22/2018 6/18/2018 4 to 8%
Allegheny Petroleum Products 5/23/2018 6/18/2018 6 to 8% on bulk, additional 2% on drums and totes
Warren Distribution 5/23/2018 6/25/2018 4 to 8%
PennStar 5/23/2018 6/15/2018 6 to 10%
Old World Industries 5/24/2018 6/30/2018 4 to 9%
ExxonMobil 6/1/2018 7/1/2018 up to 9%
TOTAL Specialties USA 6/8/2018 7/1/2018 4 to 6%
Nu-Tier Brands/Gulf/ECOSE 6/11/2018 7/13/2018 6 to 8%
Shell 6/13/2018 7/16/2018 up to 10%


IncreaseTimeline6152018R3

CLICK FOR COMPLETE LIST OF LUBRICANT PRICE INCREASES IN 2018 ROUND 1

CLICK FOR COMPLETE LIST OF LUBRICANT PRICE INCREASES IN 2018 ROUND 2

Click on the Timeline Below to See All Effective Increase Dates in 2018

IncreaseLong652018

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