A Big Bear Enters the Camp

A Big Bear Enters the Camp

Amazon is Now in the Lubricants Business

ABMotorOilPic9172018In what may come as news to some, Amazon added its own line of private label passenger car motor oil (PCMO) to the Amazon marketplace on July 23, 2018. The products are sold under the Amazon trademark, “AmazonBasics” and they are manufactured by Warren Distribution in Omaha, NE.

As seen by the product labels, there is nothing fancy or flashy about the brand. Instead, it is simple and projects an image of an economical motor oil available in the same viscosity grades and types as others in the business, and meeting the same minimum API Service Categories. There is, however, one big difference that consumers will quickly see when comparing AmazonBasics to the big brands, and it’s the price.

Whereas the average price for the leading brands of synthetic PCMO on Amazon is $29.50 for a 5-quart jug, AmazonBasics Full Synthetic is currently priced at $19.99 a jug. Similar differences are seen in conventional and high mileage products.

So it’s clear, there is now a new and formidable competitor in the motor oil business, and it is already having an impact on the market. In fact, one example was seen on the stock market this morning when Market Watch announced that “Valvoline’s stock falls after J.P. Morgan turns bearish on competition from Amazon.” Market Watch reported that “Shares of Valvoline Inc. VVV, -7.21% sank 4.2% in premarket trade Friday, after J.P. Morgan turned bearish on the engine maintenance products company, citing concerns over competition from Amazon.com Inc., which recently launched a private-label motor oil.”

Whereas private label motor oils are not new to the business, and they have certainly captured a significant share of the market over the past 20 years, the big news here is that we are talking about private label motor oil sold under the brand name of a global behemoth with a market cap more than twice that of ExxonMobil, and the ability to deliver next day to a consumer’s doorstep. But rather than what we have seen in the past where private label lubricants were poking the bear of the big brands in the business, an even bigger bear has entered the camp. And although you can be sure it will be looking to munch on the lunch of the majors, it will be interesting to see how the dynamics between Amazon and Walmart play out, particularly considering that Walmart’s private label motor oils are currently priced below Amazon’s.

But that’s all about retail sales and retail accounts for only about 25% of the PCMO consumed in the US. With that in mind, the most disruptive outcome of Amazon’s entry in the lubricants business could come if, and when, Amazon decides to enter the do-it-for-me (DIFM) segment. Although margins are generally tighter in this segment, as Bezos said, “Your margin is my opportunity.”

Ocean State Oil Invests in DEF; TOTAL Introduces New Product

In the News and on the Wire

Brenntag Lubricants announced that it will be consolidating its company trading names from GH Berlin-Windward, NOCO Distribution, and KB Page to Brenntag Lubricants Northeast. The change will take effect October 1, 2018.

Shell Remains as BMW’s Recommended Oil Supplier
Phillip 66 declares force majeure on polypropylene at Bayway refinery
Valvoline to Acquire Oil Changers, Its Second Quick-Lube Acquisition in Canada
TACenergy Acquires New Mexico Based Wholesale Fuel Distributor, Desert Fuels

Ocean State Oil Invests in DEF Blending, Packaging and Transport

Whereas the Ocean Blue Diesel Exhaust Fluid brand has been in the market since 2014, Ocean State Oil announced today it is now producing and packaging the product in-house with a state-of-the-art blending system.

Ocean Blue 2.5 gallon packaging machineOcean State Oil’s recently installed DEF system combines urea in solid or liquid concentrated form with deionized water to make a solution that conforms to the rigorous API standards for diesel exhaust fluid. The product is then sent to a laboratory for a series of tests to assure it meets or exceeds all API specifications prior to sale. Once approved, the DEF is transferred to a large holding tank for bulk delivery to customers or packaged into totes or drums. Ocean State Oil also installed a packaging line to fill 2.5-gallon jugs of DEF in-house. In addition to installing DEF blending and packaging equipment, Ocean State purchased a new 3,600-gallon stainless steel tank delivery truck to service its bulk DEF customers.

Lou Boschetti, Sales Manager, Ocean State Oil, told JobbersWorld that, “Ocean State’s investment in DEF blending and packaging equipment, together with its purchase of a new 3,600-gallon stainless steel tank delivery truck enhances Ocean State’s ability to remain competitively positioned in the DEF market and service our customers more efficiently.” Adding to this, Boschetti says, “Bringing the blending and packaging operation in-house gives Ocean State greater control over the quality of the product and this is particularly important considering the sensitivity of DEF to water quality and other issues. The purity of diesel exhaust fluid is critical to maintaining a functioning SCR system. Any chemical impurity in DEF can lead to failure of an SCR system. That is why it is very important to use only DEF products that meet ISO 22241 standards and are certified by the API.”

Ocean State Oil only sells DEF which is produced according to ISO 22241 standards and is certified by the American Petroleum Institute. Click for more

About Ocean State Oil
As a Chevron 1st Source Elite Lubrication Marketer, Ocean State Oil is New England’s leading source for quality lubricants for automotive, transportation and industrial use. Since August of 2012, Ocean State Oil is part of Total Energy, LLC, one of the Santoro family of companies that include Santoro Oil and The Gas Doctor in Rhode Island; ckSmithSuperior in Massachusetts and Domestic Fuels and Lubes in Virginia and North Carolina. Ocean State Oil’s state-of-the-art facility in Quonset Point houses 50,000 square feet of space dedicated to lubricants and over one half million gallons of indoor bulk storage. Segregated piping and controls assure brand quality of bulk lubricants. Ocean State’s on-site Lubrication Engineers have the expertise to match the optimum branded engine oils, metalworking fluids or industrial lubricants to its customer’s specific applications. The company has the ability to custom blend fluids for unique applications. In addition to lubricants, Ocean State Oil manufactures and distributes its own brand of Ocean Blue Diesel Exhaust Fluid (DEF) to businesses across RI, MA and CT. More

Total Brings TOTAL FOLIA to Market

The Lubricants Business Line of Total Specialties USA, Inc. (TSUSA), announces the launch of TOTAL FOLIA, a “revolution in the field of metalworking.” TOTAL FOLIA is a bio-sourced solution free of mineral oils and emulsifiers with high cooling and lubricating properties.

TSUSA says, TOTAL FOLIA provides substantial productivity gains through outstanding cooling and lubrication properties, reduction of process stops, longer tool life and reduced operating costs. Tooling costs in machining are a significant component of operating costs and because TOTAL FOLIA allows high temperatures to be reached, the tenacity of the tool and its natural wear increase.

TSUSA is committed to energy that is affordable, reliable and clean, in compliance with the highest safety and environmental standards and is proud to bring such a tangible solution to the challenges faced in the metalworking industry. Moreover, TOTAL FOLIA addresses three important focus areas: health, safety and environment.

  • Health Benefits: bio sourced, no smell, no fumes due to high cooling power, no skin irritation due to lack of mineral oils, cleaner operations and workspace.
  • Safety Benefits: limited inventory due to less stock keeping unit, non-slippery and spotless flooring, less hazardous components.
  • Environmental Benefits: long fluid lifespan, less hazardous to the environment, normal waste treatment methods can be applied, bio-sourced raw materials.

About Total Specialties USA, Inc.
Headquartered in Houston, Texas, Total Specialties USA, Inc. is a part of the Americas Division for the Marketing & Services Branch of the Total Group. Total Lubricants, a business unit of Total Specialties USA, Inc. offers a comprehensive range of oils, greases and special products for a range of industries. Our products are sold through a comprehensive network of distributors, direct channels and an online presence.

Missouri Valley Petroleum Inc. (MVP) to be Acquired by Parkland USA

In the News and on the Wire

Missouri Valley Petroleum Inc. (MVP) to be Acquired by Parkland USA

MVP to drive growth in commercial fuels and propane across North Dakota region

Parkland_Fuel_Corporation(1280x505px) logo (002)Missouri Valley Petroleum, Inc. (MVP), a petroleum products distributor with operations throughout North Dakota, announced today it has entered into an agreement to be acquired by Parkland USA, a subsidiary of Parkland Fuel Corporation (TSX:PKI), Canada’s largest and one of North America’s fastest growing independent suppliers and marketers of fuel and petroleum products.

MVP is a preferred provider of fuel, propane and lubricants throughout North Dakota with headquarters in Mandan, N.D. MVP operates three bulk plant terminals co-located with cardlocks in Williston, Belfield, and Mandan, and owns and operates six retail sites with convenience stores located in Mandan, Rugby and Bismarck.

“As third generation owners, today’s news is time for reflection and excitement. We believe Parkland represents a vision and business model that will be in the best long-term interest of MVP’s employees, customers and suppliers. Our name will continue to be represented in the market. We will continue serving and building our local relationships as a major part of the fabric of the North Dakota and the regional communities we serve, as we have for more than 70 years,” said Dave Froelich, MVP President. “Now, we will have the added benefit and resources of a nationally-respected industry partner, to help us grow organically in the state.”

Under the terms of the MVP Agreement, Parkland has agreed to acquire all of the issued and outstanding shares of MVP in addition to certain real estate assets used in the operation of the business.

“MVP represents an opportunity for Parkland USA to grow within its existing footprint in North Dakota and expand our offering into the commercial fueling and propane markets. These business lines provide us with a strong organic growth opportunity that we do not address today through our existing retail and wholesale fuel operations in North Dakota,” stated Dan Dunstan, Director of Sales and Operations of Parkland USA.

About Parkland USA
Parkland USA is a subsidiary under Parkland Fuel Corporation (PKI). Parkland is Canada’s largest and one of North America’s fastest growing independent suppliers and marketers of fuel and petroleum products and a leading convenience store operator. Parkland services customers through three channels: Retail, Commercial and Wholesale. Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization. More information can be found at www.parkland.ca

JobbersWorld Note: MVP provides its customers with a wide variety of lubricants including synthetic and conventional motor oils, hydraulic lubricants and a full line of grease for any piece of equipment. All MVP lubricants can be purchased in smaller or larger quantities and a lubricant specialist is always available to answer any questions or offer suggestions for your machinery. 

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Offen Petroleum Announces Pending Combination With Overland Petroleum

In the News and on the Wire

Valvoline to Participate in Goldman Sachs Global Retailing Conference on Sept. 6

(BUSINESS WIRE)–Aug 23, 2018–Valvoline Inc. (NYSE: VVV), a leading worldwide supplier of premium branded lubricants and automotive services, today announced that Sam Mitchell, chief executive officer, and Tony Puckett, president, Quick Lubes, will participate in a fireside chat at the Goldman Sachs 25th Annual Global Retailing Conference in New York City on Thursday, Sept. 6, at 10:30 a.m. ET. A live audio webcast of the fireside chat will be available on the company’s website at http://investors.valvoline.com

Valvoline Chalks Out Plans to Reinforce Quick-Lube Model

Offen Petroleum Announces Pending Combination With Overland Petroleum

Combination Forms Largest Fuel Distributor in the Greater Rocky Mountain Region

Offen Petroleum, a leading independent fuel distributor, announced today that it has signed a binding agreement to acquire the business assets of Overland Petroleum, a respected fuel distributor. Offen Petroleum is a portfolio company of Lariat Partners (“Lariat”), a Denver-based private equity firm, Offen is a provider of motor fuel, lubricants, and petroleum logistics services in Colorado and 12 surrounding states. The combination creates one of the largest fuel distributors in the Greater Rocky Mountain region and will operate as Offen Petroleum.

The transaction is expected to be completed in the third quarter upon completion of regulatory and closing conditions.

Based in St. George, Utah and owned and operated by the Snow and Ipson families, Overland Petroleum is an independent fuel distributor that operates in the Greater Rocky Mountain Region. In recent years, Overland has focused its growth by delivering branded fuel to independent convenience retailers. Overland has focused on the Sinclair brand but also offers Conoco, Phillips 66, and the brands licensed by Andeavor. In addition to these branded relationships, like Offen, Overland distributes wholesale gasoline and diesel fuel to unbranded fuel retailers and commercial customers across the Rocky Mountains and Southwest regions of the United States. Overland controls its own fleet of tankers and currently operates in Utah, Arizona, Nevada, Idaho, Colorado, Wyoming, Montana, and New Mexico.

“As leaders in our core markets, the combination creates a stronger company, better able to optimize the utilization of our fleet assets and expand upon our supplier relationships as we continue to efficiently serve our valued customers,” said Bill Gallagher, CEO of Offen Petroleum. “I am pleased that Darin Snow and Danny Ipson will be joining our expanded leadership team. Further, with a team of 100+ experienced drivers combined with our longstanding supply relationships, modern fleet, scalable processes and systems, and best-in-class team, we will continue to safely deliver superior levels of customer service and a full slate of motor fuel product offering.”

Jay Coughlon, Managing Partner at Lariat Partners, said, “This transformative acquisition nearly doubles the size of Offen and creates a leader in the greater Rocky Mountain region. Since partnering with Bill, Offen has outperformed our expectations with strong organic growth and continued investment in people and systems while maintaining industry leading safety performance. The addition of Overland’s strong management team deepens our already strong executive bench and enhances our ability to continue growing. We continue to pursue acquisition opportunities that will strengthen our existing operations as well as penetrate new geographic markets.”

About Offen Petroleum
Offen traces its roots to the 1930s and was acquired by Bill Gallagher and Gwen Stukey in 1997. With Overland, the company will deliver nearly 1 billion gallons of motor fuel annually and will serve as both a branded and unbranded wholesale motor fuel distributor in 12 states. In addition to motor fuels, Offen also sells lubricant products and solutions for the commercial, industrial, and passenger car segments, as well as diesel exhaust fluids used in emission controls. More information on Offen can be found at www.offenpetro.com.

About Lariat Partners
Denver-based Lariat Partners is a private equity firm focused on redefining the private equity experience in the lower-middle market. With its People First, Strategy Second relationship philosophy and its CORE investment strategy targeting Consolidations, Consumables and Recurring Revenue businesses, Lariat offers a differentiated approach to partnering with entrepreneurs and growing their middle market businesses. The firm targets companies across a number of industries, including Specialty Distribution, Energy & Environmental Services, Food & Agribusiness, Consumer Products and Maritime Services. For more information, visit www.lariatpartners.net

Source: PRNewswire

Burckhardt Compression and ExxonMobil Sign Global Lubricants Collaboration Agreement

Two leaders in their fields come together to collaborate and deliver high performance lubricants and technical services. The offering is available for all operators of reciprocating compressors, who want to make the right choice when it comes to cylinder lubrication oil. The aim is to optimize plant reliability, increase productivity to its maximum and reduce costs.

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The team from ExxonMobil and Burckhardt Compression celebrate the signing of the global lubricants collaboration agreement at Burckhardt Compression’s facility in Winterthur, Switzerland (Image source: ExxonMobil)

Burckhardt Compression and ExxonMobil, two masters in class, have signed a global lubricants collaboration agreement to help deliver increased productivity, reduced cost and greater value to customers. This collaboration supports new product technology, engineered specifically for the unique performance requirements of reciprocating compressor systems and better meet customers’ needs. Burckhardt Compression has preferentially endorsed this new product technology for use in its equipment. The offer also includes an enhanced equipment performance and lifetime, as well as lubrication related services.

The companies will provide a full range of equipment and technical lubrication services to help customers who use the new products to optimize the equipment performance. These services, performed globally by Burckhardt Compression and ExxonMobil’s field engineering teams, include specialized training in products and lubrication best practices, lubricant analysis, equipment troubleshooting and maintenance support.

Martin Wendel, President of Services Division at Burckhardt Compression said, “We are looking forward to working closely with ExxonMobil to offer the most suitable solution to our customers. With ExxonMobil, the lubricant expert on board, we are confident we can deliver best-in-class products and technical support for our advanced equipment and to help customers achieve their business goals.”

“Industrial operators rely on a wide variety of equipment, including high-pressure compressors, in their daily operations. Equipment reliability is critical to boost operational efficiency and reduce costs,” said Gerald De Causemaeker, Director Finished Lubricants EAME at ExxonMobil.

“Our collaboration with Burckhardt Compression combines excellent experience in application engineering with lubrication expertise to help customers optimize their plant’s efficiency. Our range of Mobil Rarus PE compressor lubricants and services will also help customers to improve equipment reliability, enhance safety and reduce their environmental impact.”

About Burckhardt Compression
Burckhardt Compression is the worldwide market leader for reciprocating compressor systems and the only manufacturer and service provider that covers a full range of reciprocating compressor technologies and services. Its customized compressor systems are used in the upstream oil & gas, gas transport and storage, refinery, chemical, petrochemical and industrial gas sectors. Burckhardt Compression’s leading technology, broad portfolio of compressor components and the full range of services help customers around the world to find the optimized solution for their reciprocating compressor systems. Since 1844 its highly skilled workforce has crafted superior solutions and set the benchmark in the gas compression industry. CLICK FOR MORE

PQIA Shines Light on “303” Tractor Hydraulic Fluid

The Petroleum Quality Institute of America released a Bulletin this week addresing the actions taken by the states of Missouri, Georgia, and North Carolina issuing stop-sale orders for tractor hydraulic fluid (THF) labeled, claimed or implied as meeting THF 303. The bulletin provides important insight on the quality of “303” THFs in the market.

ODDS303THFThe bulletin reports that although each of the ten J20C samples of THF examined by PQIA meet the viscosity requirements for that specification, 21 out of 23 (or 91%) of the samples of 303 PQIA examined failed to meet the viscosity requirements for the current J20C specification, and J20A which has been obsolete since 1989. What’s more, if you go back to J14B, a specification obsolete since 1978, 17 (or 74%) of the “303” samples still fail to meet the viscosity requirements. In addition to failing the John Deere specifications, the viscosities of the “303” samples examined also come up short in applications where other OEM lubricant specifications are called for, including: AGCO, Case, New Holland, Massey-Ferguson, White, and Kubota.

But what the PQIA says should be the “most concerning and compelling number to consider among the odds is the 100% chance of not knowing if a “303” THF meets the requirements of, or is suitable for use in a tractor when the product label fails to provide the purchaser with information about the specifications the product meets and its intended use.”

For these reasons, the Petroleum Quality Institute of America says it supports the actions by the states of Missouri, Georgia, and North Carolina to remove THF products from the market that fail to provide buyers with the information needed to make an informed buying decision, and prevents states, PQIA and others from testing the fluids to help ensure compliance with specifications. In addition, PQIA encourages other states to follow the lead of MO, GA, and NC in stopping sale on these products while providing lubricant manufacturers and marketers time to clear the system of 303 and label its products appropriately. Further, PQIA encourages the lubricants industry to adopt an existing manufacturer’s specification as the minimum requirement to meet the needs of tractor owners looking to service older equipment with an economical fluid, and to include warnings on labels of product only meeting obsolete specifications. Because in the absence of this, the unfortunate reality is that consumers’ equipment will remain at risk and the 303s will continue to unfairly tilt the playing field against responsible lubricant manufacturers and marketers. CLICK FOR BULLETIN

Parkland Fuel Corp. Enters Agreement to Acquire Rhinehart Oil Co.

Parkland Fuel Corporation’s Acquisition of Rhinehart Oil Co., Inc. Expected to Double its U.S. Operations

The acquisition provides a key platform for expansion of Parkland’s business and operations in the United States

Parkland Fuel Corporation Canada’s largest and one of North America’s fastest growing independent marketers of fuel and petroleum products and a leading convenience store operator, is pleased to announce that Parkland through its U.S. based subsidiaries (collectively, “Parkland USA”), has entered into an agreement to acquire all of the issued and outstanding equity interests of Rhinehart Oil Co., Inc. and its affiliates (collectively, “Rhinehart”), a retail, commercial and lubricants business with operations in Utah, Colorado, Wyoming and New Mexico, (the “Acquisition”).

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Doug Haugh, President of Parkland USA

Rhinehart is headquartered in American Fork, Utah and transports, distributes and markets a full range of fuels, lubricants and chemical products in addition to providing equipment and one-stop shop servicing to its customers in the region. Rhinehart operates and supplies four cardlock facilities, nine retail sites and markets and distributes fuels, lubricants and specialties through ten distribution facilities. Rhinehart distributes approximately 72 million gallons of fuel and lubricants per year.

“The Rhinehart Acquisition represents a significant expansion for Parkland,” said Bob Espey, President and Chief Executive Officer of Parkland. “Rhinehart has an excellent business and asset base that will serve as a platform for growth in Utah, Colorado and neighboring states. We are excited to welcome Dave and John Jardine from the Rhinehart leadership team and the rest of the Rhinehart employees to the Parkland team.”

“Rhinehart is a prominent fuel distributor and a well scaled and respected ExxonMobil lubricants distributor,” said Doug Haugh, President of Parkland USA. “The addition of Rhinehart to the Parkland USA team provides us with the talented staff and scalable infrastructure we need to establish our Regional Operations Center (“ROC”) for the Rocky Mountain tributary. This ROC will be the operating platform that drives organic growth and enables further acquisitions across the region that can leverage substantial existing capacity within their current rail hubs, bulk storage terminals, and warehouses.”

The Acquisition is expected to close on or about August 27, 2018 and is expected to be funded with cash flows and capacity under Parkland’s existing credit facility. The Acquisition is subject to customary closing conditions.

About Parkland Fuel Corporation
Parkland is Canada’s largest and one of North America’s fastest growing independent suppliers and marketers of fuel and petroleum products and a leading convenience store operator. Parkland services customers through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating the Parkland Burnaby Refinery, and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings, including its On the Run/Marché Express banners, in the communities it serves.

Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization.

U.S. Judge Authorizes Seizure of Venezuela’s CITGO

U.S. Judge Authorizes Seizure of Venezuela’s CITGO

To the surprise of many in our industry, it was announced today that a US Federal Judge Leonard P. Stark of the U.S. District Court in Wilmington, Delaware, authorized the seizure of Houston-based CITGO Petroleum Corporation.

The order was issued to satisfy a Venezuelan government debt. Adding to this, the U.S. State Department ordered that Asdrúbal Chávez, who headed CITGO, surrender his U.S. visa. It is speculated that this could result in Petroleos de Venezuela, S.A. (PDVSA) losing control of CITGO.

CITGO is one of PDVSA’s largest foreign assets, and with CITGO’s three refineries in the U.S., the Venezuelan government is the largest foreign owner of domestic refinery capacity. CITGO’s refineries account for close to 4% of U.S. fuel capacity, including gasoline, diesel, and jet fuel. In addition, although its lubricant sales volume in the U.S. has waned over the years from close to 150 million gallons at its peak at the turn of the millennium, it remains a major player in the lubricants business.

It will be interesting to see how this plays out. Whereas some in our industry feel it could have a negative impact on CITGO’s lubricant sales by reminding buyers about its connection to Venezuela and bring back memories of President Hugo Chávez’s infamous “the Devil” speech before the United Nations General Assembly in 2006, others speculate that a severance of ties to Venezuela, should it occur, could bolster CITGO’s lubricant sales.

North Carolina Issues a Stop-Sale Order On “303” Tractor Hydraulic Fluid

As reported by the Petroleum Quality Institute of America on Wednesday of this week, the North Carolina Department of Agriculture and Consumer Services (NCDA&CS) issued a stop-sale order for tractor hydraulic fluid (THF) products labeled, claimed or implied as meeting THF 303, which has no known specifications available.

The NCDA&CS order requires that, manufacturers and distributors will have six months to remove these products from retail locations. These products may be relabeled to either remove the J303 specification or include a more recent John Deere specification it does meet. Online sales shall include a note that these products are not legal in North Carolina. CLICK FOR MORE

Source: The Petroleum Quality Institute of America

Warren Distribution in Midst of $10 Million Investment to Enhance Packaging Capabilities

Rather than speculating on why these large investments are made, JobbersWorld went right to the source for answers.

Warren Distribution has recently made some major investments to enhance its packaging offering and capacity. This year alone, it implemented investments totaling $10 Million that impact all three of its packaging plants. The projects include:

  • Increasing capability and flexibility across all high-speed quart filling lines to accommodate wide-mouth bottles/caps, as well as pressure-sensitive labels. Conversion of lines are completed in Alabama and Iowa; the West Virginia conversion is in progress and will be completed by the end of Q3.
  • Substantially increasing quart blow-molding capacity by going to dual-parison mold on wheel blow molder in West Virginia. New capacity will be in place by Q4 of this year.
  • Almost doubling company-wide multi-quart bottle (gallon and 5-quart) blow-molding capacity with purchase of new blow molder in Iowa. New capacity will be in place by Q2 2019.

WDQuote81020182These investments by Warren Distribution are in addition to those recently reported by JobbersWorld, including the new blend plant in Houston and warehouse expansion in Iowa. Following JobbersWorld’s story about these investments, we fielded a number of questions from readers asking, why a blender would invest so heavily in an industry where demand has been relatively flat. Rather than speculating, JobbersWorld went right to the source for answers and here is what Warren Distribution was willing to share from our discussions.

The first important take away, and a large part of the reason for Warren Distribution’s investments, speaks to changes in the marketplace.

“While the pace of change in the lubricants industry is not nearly as fast as that seen in consumer electronics, retail, food service, and others, significant changes have and continue to occur in the lubricants business that requires some hand-wringing strategic decisions by key players,” says Curt Knapp, Warren Distribution’s Chief Operating Officer. These decisions are typically based on thoughtful and thorough analysis of both cyclical and systemic market dynamics. And in today’s environment, they include the fact that although cyclical changes in the economy (i.e. the current booming economy) has spurred demand, the systemic reality is that the demand for lubricants in the North American market is generally considered to be on a path of low-to-declining growth in volume.

Another important consideration for those in the automotive lubricants segment is that over the past two decades, the Do-It-Yourself (DIY) class of trade has steadily declined as an increasing number of consumers drove their cars to Do-It-For-Me (DIFM) outlets for service. Adding to this, Knapp says, “As the consumers shifted away from DIY, retailers’ private-label lubricants have grabbed substantial market share at the expense of the major brands. The result has been robust growth in demand volume for retailer brands. And in their pitched battle to continue to grab Majors’ market share, retailers are demanding packaging with a premium appearance to help close the gap in perceived quality. Similarly, even in the DIFM market, automotive wholesalers are selling much more of their private label packaged lubricants into the automotive service market, displacing Majors’ brands.”

While these and other changes taking place favor suppliers that invest in their business, the decision to do so requires a high level of strategic planning and recognition that changes typically bring a new set of challenges that must be anticipated, and when possible, proactively addressed. To this point, Bob Schlott, Warren Distribution’s owner and CEO, says, “Decisions to make these large investments are not easy, especially in a market that has seen margins contract.” But, Schlott adds, “Our decision to make the investments was ultimately driven by our commitment to continue to provide a high level of service for our customers as we try to keep ahead of the growth we are enjoying, plus we need to satisfy changing market demands, because we are in this for the long-haul.”

“Doing all of these projects in a short time frame while servicing a large and growing business has been a massive, once-in-a-lifetime challenge,” said Curt Knapp, and… “Although we make every effort to anticipate and address the challenges driven by change, we also understand how change can be challenging for our customers, and appreciate their understanding and support as we work through the process.” But at the end of the day, Knapp adds, “We are confident the investments we have and continue to make in the business will further strengthen Warren Distribution’s position in the market and put us in a better position to serve its customers for the long-term.”

Editor’s Note: JobbersWorld’s discussions with Warren Distribution reminded us of a quote made famous by Jamie Dimon, President and CEO of JPMorgan Chase, when he said, “Companies that grow for the sake of growth or that expand into areas outside their core business strategy often stumble. On the other hand, companies that build scale for the benefit of their customers and shareholders more often succeed over time.” Based on the growth Warren Distribution has enjoyed over the years, it was clear from our discussions with Warren Distribution that the fundamentals of its investments are based on pursuit of the latter.

About Warren Distribution:
Warren Distribution is a family-owned business that was founded over 97 years ago in 1922 by the grandfather of Robert Schlott, the current Chairman and CEO. Now, it’s the largest private label blender and one of the largest independent motor oil, lubricants and automotive chemicals manufacturers and suppliers in North America. The Company is the private label supplier for some of the largest retailers, marketers and lubricants distributors in North America and has customers in more than 30 countries. It has the capacity to produce 100 million gallons of bulk and packaged lubricants from more than 1,100,000 square feet manufacturing and distribution facilities in Iowa, West Virginia, Alabama and Texas. The headquarters office is in Omaha, NE.

Vesco Acquires Acculube

On the Wire and In the News

Vesco Oil Corporation Acquires Acculube, Leading Distributor of Lubricant and Metalworking Products in Dayton, Ohio

Vesco Oil Corporation, one of the largest distributors of branded automotive and industrial lubricants in the United States and a leading provider of environmental services, including used oil and antifreeze collection, today announced the acquisition of Accurate Lubricants & Metalworking Fluids Inc, aka Acculube.

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Lilly Epstein Stotland
Vesco Oil Corporation President and co-owner

Vesco Oil, a third-generation family-owned business founded in 1947, services the Michigan, Ohio, Pennsylvania and Indiana markets. For Vesco Oil the acquisition will enlarge its geographic footprint and expand its product and service offerings in Ohio. Founded in 1990 and based in Dayton, Ohio, Acculube is a leading distributor of industrial and metalworking fluids. It is a privately held distributor of Mobil industrial and commercial vehicle lubricants, and a distributor of industrial chemicals and metalworking fluids for Castrol and Houghton. Vesco Oil Corporation President and co-owner Lilly Epstein Stotland made the acquisition announcement. “Acculube has a wonderful history and reputation in the industry, and we have the utmost respect for its leadership and expertise. Vesco Oil has sought strategic growth, and Acculube fits perfectly into our growth plans,” said Epstein Stotland. “Our companies share similar values and a customer-centric mindset. We welcome Acculube to our Vesco Oil family.”

“For 28 years, our leadership team and dedicated employees have built a great company,” said Acculube CEO Marilyn Kinne. “I am so pleased we will now join Vesco Oil, a company I have held in high regard for many years.” Acculube President Chris Fisk will continue as the Dayton division manager for Vesco Oil. “We take great pride in serving our customers. Our relationship with Vesco Oil will only help them to grow and prosper,” said Fisk. In the last eight years, Vesco Oil has expanded its business with existing suppliers including five locations in Cleveland, Columbus, Dayton, and Wauseon, Ohio, and Pittsburgh, Pennsylvania.

Vesco Oil is one of the largest distributors of Mobil branded lubricants. Other key supplier relationships include Valvoline-VPS, Castrol Metalworking, Perkins, Motorcraft, MOC Products, Fortech, and Niteo.

About Vesco Oil Corporation:
Vesco Oil Corporation is an ISO 9001 – 14001 certified and environmentally conscientious distributor, providing automotive and industrial customers with a full range of high quality lubricants and supporting services. Founded in 1947 by Eugene Epstein, Vesco Oil Corporation is one of the largest distributors of branded automotive and industrial lubricants in the United States and is a leading collector of used oil and antifreeze. The company also is a full service provider of automotive appearance products, sells a full line of metalworking fluids and is a leading provider of bulk windshield washer solvent and antifreeze. Vesco Oil Corporation is a majority women- owned business, receiving Certification from the Women’s Business Enterprise National Council. For more information, visit www.vescooil.com.

FTC Completes Review of Recycled Oil Rule

The Federal Trade Commission (FTC) today announced it has completed its regulatory review of the Recycled Oil Rule (formally, the “Test Procedures and Labeling Standards for Recycled Oil”).

“As part of its systematic review of all current FTC rules and guides, in 2017 the Commission sought public comment on the costs, benefits, and regulatory and economic impact of its rule. After reviewing the comments received, the agency has amended the rule to update the reference to API Publication 1509.”

The FTC updates the Rule’s reference to American Petroleum Institute Publication 1509 to reflect the most recent version of that document. Otherwise, the Commission retains the Rule in its current form.

Click for public comment analysis and amendment: 16 CFR Part 311: Test Procedures and Labeling Standards for Recycled Oil; Incorporation by Reference of Updated Publication

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

As reported in JobbersWorld on July 16, 2018

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

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

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