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 10, 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

Nu-Tier Brands and Total Announces Lubricant Price Increase

Nu-Tier Brands and Total Announces Lubricant Price Increase

Nu-Tier Brands announced that due to rising costs associated with raw materials and manufacturing, Nu-TierBrands/Gulf/ECOSE Lubricants will increase its prices by 6 to 8%. The increase is effective July 13, 2018.


TOTAL Specialties USA announced that effective July 6, 2018, the price of TOTAL branded lubricants will increase by 4 to 6%. The adjustment is reportedly due to the continuing escalation in the cost of base oils, additives, and other materials used in manufacturing and distribution of lubricants.


NOTE: As a point of clarification, although JobbersWorld included Amalie’s recent price increase, announced on May 18, in a table showing companies that have announced in the third round of price increases for 2018, Amalie’s increase was in fact its second for the year, not a third.



JWLubeQuiz

Tractors6112018

And the Winners Are…

JobbersWorld ran a LubeQuiz two weeks ago about two old tractors we recently had the pleasure of seeing in action at a working farm. About these tractors, we asked JobbersWorld readers, how do you check the oil in the tractor shown at the right, and what type of oil is used in that tractor and the one at the below it that is cranked to start?

We received a number of interesting responses. Some right, some not so right, and some that were quite humorous. The winners of the quiz, the ones who got it right are shown below:

Name Company
Erik Dober Jerry Willkomm, Inc./ JWI Transportation
Frank Daul Halron Lubricants
Curtis Grove
Tim Svoboda PetroChoice
Brad VandeBunte J & H Oil Co.
Wayne Hughes TOTAL Specialties USA
Terence Dyson DysonAnalysis

Whereas all the winners said the two petcocks on the oil pan are used to check the oil level, one answer in particular sounded like it came right from the farmer’s mouth that we visited. This answer was from Tim Svoboda with PetroChoice. Tim said, “The tractor has two petcocks to check oil. It is always best to check oil after the tractor idled for a few minutes. The upper petcock would drain until it dribbled, close it, then the tractor has enough oil in it. When adding 30W to this age of tractor, most farmers had to use a glass-quart-Mason jar with a screw on metal funnel.”

With regards to both how to check the oil and the viscosity grade used, Erik Dober from Jerry Willkomm/JWI Transportation summed it up by saying, “Check oil level on the side of the oil pan. Two petcocks on side, lower is your low oil level, upper is full. Oil used should be: Above 80°F use SAE 30, 32°F to 80°F use SAE 20, and below 32°F use an SAE 10.”

For those unfamiliar with this tractor, it’s an International Harvester Farmall Tractor. Other than saying it was from the “40s,” the farmer did not know the age, but he sure knows how to keep this one and all the other tractors on the farm running.

Congratulations to the winners!

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%


IncreaseTimeline6112018R3

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

ExxonMobil the First Major to Move in Round 3

ExxonMobil the First Major to Move in Round 3

ExxonMobil advised its customers on June 1st that it will implement a price increase of up to 9% on its branded and unbranded passenger car, commercial, industrial, marine and aviation lubricants and greases. The increase is effective July 1, 2018.


PennStar announced on May 23rd a general price increase of 6 to 10% to be effective with orders placed after Friday June 15, 2018 on all lubricating oils, gear lubes, and greases. PennStar attributes the increase to the continued rise in base oils, additives and freight costs which impacts its manufacturing and distribution of its lubricant products.

BASF Names Chemroy A Distribution Partner in Canada

Agreement includes lubricant additives and components of metalworking fluids

BASF signed a distribution agreement with Chemroy, a leading distributor of specialty chemicals, to manage its portfolio of antioxidants, base stocks, surfactants and additives throughout Canada.

The product brands include Irganox®, Irgacor®, Irgalube®, Irgaflo®, Synative®, Plurasafe® and Breox®. The agreement supports customers participating in the lubricants and metalworking market and becomes effective June 1.

“Chemroy’s industry expertise, agility and adaptability to meeting individual customers’ needs makes them the right distributor for our lubricant additives and metal working products in Canada,” said Eric Escobar, Director of Corporate Distribution, BASF.

About BASF’s Fuel and Lubricant Solutions
The global business unit Fuel and Lubricant Solutions (basf.com/fuel-lubricant-solutions) is a leading supplier to the transportation and mineral oil industries worldwide and part of BASF’s Performance Chemicals division. Offerings cover fuel performance packages, refinery additives, polyisobutenes, engine coolants and brake fluids as well as lubricant additives, compounded lubricants, synthetic base stocks and components for metalworking fluids. The business unit has its main facilities in Ludwigshafen, Germany, Cincinnati and Florham Park in the USA, Nanjing and Shanghai in China, as well as Sao Paulo, Brazil. Research and development is mainly driven out of Ludwigshafen, Germany, Tarrytown, USA and Shanghai, China.w Renewable Base Oil Technologies

ARG Branded Lubricants get new Look

ARGSpecialtyLubricantsAmerican Refining Group Inc. (ARG) introduced this week the new logo for the Made in USA-certified refinery’s house brand of blended lubricants.

As part of the new logo, industry partners and customers will recognize the traditional red and black windmill that has been ARG’s mark for decades.

The company’s blended lubricants team first shared the image this week at the 73rd Society of Tribologists and Lubrication Engineers (STLE) Annual Meeting & Tradeshow in Minneapolis.

Blended Lubricants Business Manager Todd Cawley said, “We were so excited to share this news at STLE, especially when we have already received some really positive feedback from distributors who formerly did business with us and are eager to re-establish that relationship.”

ARG President and Chief Operating Officer Jeannine Schoenecker said, “First and foremost we are American Refining Group, so we wanted to stay true to the customary design that our partners have come to associate with us.

“Furthermore, both our leadership and our customers felt it was imperative that we include the phrase, ‘Made in Bradford, Pa., USA,’ ensuring that it appears front and center on all of our labels and packaging.”

Of the brand’s “Specialty Lubricants” tag, Senior Vice President – Sales, Marketing and New Business Development Neal Zuzik added, “One of the things that really distinguishes ARG from our competitors is that our smaller size lets us produce specialty blends and finished products that meet unique customer needs when other, bigger refiners can’t. Highlighting this competitive advantage within the brand name was important.”

ARG’s unique, privately owned refinery is situated on approximately 131 acres in Bradford, Pa., the heart of McKean County and the birthplace of the domestic oil industry more than 100 years ago. The refinery has a rated capacity of 11,000 barrels per day and processes light, sweet, paraffinic crude available domestically. ARG purchases the majority of its crude from sources in Pennsylvania, Ohio, New York and West Virginia.

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%

IncreaseTimeline652018R3

 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

Lubricant Additive Prices are Moving Up

Lubricant Additive Prices are Moving Up

Lubrizol – On May 29th, Lubrizol announced it will implement a 5% to 9% price increase across all product areas and all shipping locations. The increase is effective July 1, 2018 and will vary across product area and specific product families. 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.


Afton Chemical – On May 18th, Afton announced 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.

SK Capital buys SI Group

Combination with Addivant to Create a Global Leader in Plastic, Lubricant, Oilfield, and Rubber Additives

SK Capital Partners has acquired Schenectady, New York-based SI Group, a developer of performance additives and intermediates. No financial terms were disclosed. The deal is expected to close in the second half of this year.

SK Capital Partners, a private investment firm focused on the specialty materials, chemicals and pharmaceuticals sectors, announced today an agreement to acquire SI Group, a leading global developer and manufacturer of performance additives and intermediates. Headquartered in Schenectady, New York, SI Group operates 20 manufacturing facilities on five continents with more than $1 billion in annual sales and over 2,800 employees worldwide.

SI Group is being acquired from the descendants of W. Howard Wright, who founded the company in 1906. At the close of the transaction, SK Capital will combine SI Group and Addivant, a leading global supplier of additives including antioxidants, antiozonants, inhibitors, polymer modifiers and UV stabilizers used by customers to improve the production and performance properties of polymers, plastics and rubbers. SK Capital has owned Addivant since 2013.

Barry Siadat, a co-founder and Managing Director of SK Capital, noted, “We are excited that SI Group will be joining the SK Capital portfolio of chemicals and pharmaceuticals businesses. SI Group has an excellent fit with the technologies and end markets of several SK Capital businesses, including Addivant in additives, Noramco in the area of pain management pharmaceuticals, and TPC Group in building block chemicals for certain SI Group products. These technology and market connections will enhance and accelerate the continued growth and transformation of SI Group. Additionally, by combining the complementary strengths of SI Group and Addivant, we will be creating a global technology and industry leader in plastic, lubricant, oilfield and rubber additives.”

“SK Capital is a firm known for its sound business practices, deep industry experience, and impressive portfolio of companies in the chemicals sector,” said Wallace A. Graham, Chairman of SI Group. “We are thrilled by the prospect of SI Group joining SK Capital, as it will enhance the company’s performance additives and intermediates business in the plastic, oil and gas, pharmaceutical and rubber sectors. We expect to see great things in the years ahead.”

The transaction is expected to close in the second half of 2018. Latham & Watkins LLP acted as legal counsel to SK Capital and committed debt financing was provided by JPMorgan Chase Bank, N.A., HSBC Securities (USA) Inc., Deutsche Bank Securities Inc. and Bank of America, N.A. Baker Botts LLP and HSBC Securities (USA) Inc. acted as legal counsel and exclusive financial advisor, respectively, to SI Group.

ABOUT SK CAPITAL
SK Capital is a private investment firm with a disciplined focus on the specialty materials, chemicals and pharmaceuticals sectors. The firm seeks to build strong and growing businesses that create substantial long-term economic value. SK Capital utilizes its industry, operating and investment experience to identify opportunities to transform businesses into higher performing organizations with improved strategic positioning, growth and profitability as well as lower operating risk. For more information, please visit www.skcapitalpartners.com.

ABOUT SI GROUP
SI Group is a leading global developer and manufacturer of performance additives and intermediates – solutions that are critical to the quality and performance of countless industrial and consumer goods. Founded in 1906 and headquartered in Schenectady, New York, SI Group operates 20 manufacturing facilities on five continents with more than $1 billion in annual sales, and over 2,800 employees worldwide. In 2017, SI Group received its second silver award for corporate social responsibility by EcoVadis, and is ranked among the top 10 percent of more than 30,000 worldwide companies. SI Group is The Substance Inside. For more information, please visit www.siigroup.com.


ALPLA BUILDS NEW PLANT IN DAYTON, OHIO

ALPLA, Inc., a global manufacturer of rigid plastic packaging for a wide range of consumer products, announced that it will build a new plant with at least 50 jobs by the time it reaches full production in April 2019. The plant, located adjacent to the Dayton International Airport in Park 70/75 represents a $21 million investment in 154,000 square feet of an existing building which will serve current and new customers within ALPLA’s growing list of US locations.

ALPLA is one of the leading companies in plastic packaging. Around 19,000 employees worldwide produce custom-made packaging systems, bottles, closures and molded parts at 176 sites across 45 countries. The high-quality packaging is used in a wide range of areas, including for food and drinks, cosmetics and care products, household detergents, washing and cleaning agents, engine oils and lubricants. ALPLA celebrated its 60th anniversary in 2015.

According to Philipp Lehner, Regional Manager of ALPLA’s North American operations, “We are quite pleased to join the Dayton business community, and look forward to working with local leaders as we build our team and optimally develop plans for growth in the area.”

ExxonMobil Issues First-of-its-kind Base Stocks Industry Pulse Report: Decision Makers Weigh in on Trends, Industry Shifts

ExxonMobil published its inaugural, first-of-its-kind report on the global base oil industry, titled, ExxonMobil Basestocks 2018 Industry Pulse Report, in partnership with KRC Research, a global research consultancy. Based on viewpoints from hundreds of decision makers in the industry, the report uncovers insights into the ever-evolving market. The report is designed to help pinpoint industry drivers, evaluate the base oil landscape and explore current trends.

“We found the insights from the ExxonMobil Basestocks 2018 Industry Pulse Report particularly informative and because of this, we decided to share this broadly, in an aim to help educate the industry for the changes the future may bring,” said Ted Walko, Global Basestocks and Specialties Marketing Manager at ExxonMobil.

Group II Represents the Heart of the Market

The ExxonMobil Basestocks 2018 Industry Pulse Report revealed that nearly 75 percent of base oil decision makers view Group II base oils as the “heart” of the market. In addition, the report showed that:

  • Group II base oils are seen as the most important to the automotive (34 percent), marine (31 percent), industrial (37 percent) and commercial vehicle (41 percent) industries.
  • While base oil decision makers in Europe, the Middle East and Africa (EMEA) are least likely to say that Group II base oils are the heart of the market (60 percent), more than half (52 percent) said they would likely transition away from Group I and/or Group III base oils if they had access to a Group II manufacturer.

“We pride ourselves on having a strong lens into the industry and these results substantiate why we are committed to investing in expanded Group II supply through our three, strategically located refineries in Baytown, Texas; Jurong, Singapore; and Rotterdam, Netherlands,” Walko added.

Group I Proves to Remain Beneficial Despite Overall Decline

One-third of base oil decision makers said that while demand for Group I base oils has decreased at the highest rate, when compared to other base oil groups, they still see its importance:

  • Seventy-two percent admit the decline in Group I demand has had a significant impact on the industry.
  • Decision makers ranked Group I’s top three benefits with viscosity (54 percent) in the top spot, closely followed by its solvency (49 percent) and affordability (46 percent).

“We recognize that Group II is not a perfect fit for all applications and this report affirmed our confidence in Group I and the value it will continue to play in the base oil industry,” Walko explained.

Majority Says API Standards are Sufficient

According to the report, a majority believe the current API standards are sufficient for formulating and manufacturing engine oil:

  • Sixty-one percent of decision makers concurred, and slightly more than one-quarter (27 percent) disagreed, calling for an adjustment now.
  • Some believe (12 percent) that the standards should be adjusted within the next 10 years.

Base Oil Industry Can Keep up with Automotive Changes

The survey found that while more than three-fourths (77 percent) are concerned about the increased implementation of fuel economy and emissions regulations, they feel confident that the base oil industry will keep up:

  • Eighty percent asserted their confidence in the base oil industry’s ability to keep up with evolving regulations.
  • Two-thirds believe that Group II or Group III base oils can best handle an increase in more stringent fuel economy and emissions regulations.

For more industry insights, download the full report here.

About the ExxonMobil Basestocks 2018 Industry Pulse Report
The ExxonMobil Basestocks 2018 Industry Pulse Report surveyed more than 300 base oil decision makers from the following industries: additive manufacturers, lubricant manufacturers, industry associations and equipment manufacturers. The survey required an even split of at least 100 respondents from APAC, the Americas, and EMEA to ensure results encompassed a global perspective. The survey was also translated from English to Spanish, French, German and Standard Mandarin, as needed.

About ExxonMobil Basestocks
Building on its long tradition of technology leadership with its CORETM Group I slate, ExxonMobil continues to enhance the EHCTM product line to enable excellence for its customers. To this end, ExxonMobil technical experts designed the overall EHC product slate to meet performance requirements of a wide range of engine oil grades and other finished lubricant applications. The EHC Group II slate also allows customers to take advantage of industry base oil interchange and viscosity grade read-across guidelines to reduce formulation costs for many engine oil formulations.

For more information about product supply, visit ExxonMobil Basestocks. For key insights into the industry, along with exclusive updates on our global refinery expansion projects, subscribe to our quarterly newsletter today.

About KRC Research
KRC Research is a global full-service nonpartisan opinion research and strategy firm. A unit of the Interpublic Group of Companies, KRC Research offers the quality and custom service of a small firm with the reach of a global organization. For over 30 years, KRC Research has worked on behalf of corporations, governments, not-for-profits and the communications firms that represent them. Staffed with multidisciplinary research professionals, KRC combines sophisticated research tools with real-world communications experience. For more information, visit: www.krcresearch.com.

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 5 to 9%
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%

IncreaseTimeline5242018R3

 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

TimelineLong5222018

Four More Up Prices

Warren Distribution announced a price increase of 4 to 8% on all lubricant products, depending on the product and package size. The new prices will go into effect with shipments on or after Monday, June 25, 2018. Warren Distribution sites several factors driving the announced increase. One is the continued rise in the price of base oils in response to higher crude oil prices. Additionally, it says, acquiring timely transportation services have become more difficult, so freight rates have significantly escalated. Lastly, rising steel prices have caused a precipitous increase in drum costs.


Allegheny Petroleum Products  announced a price increase of 6% to 8% on bulk lubricants and an additional 2% on drum and tote packaging, depending on the product. Allegheny attributes the price change to the ongoing base oil, additive, and packaging cost increases that continue to occur industry wide. The price change will be effective on orders placed on or after June 18, 2018.


Maverick Performance Products advised its customers that due to multiple increases in raw materials used in the manufacturing of finished lubricants, Maverick Performance Products will be passing through a price adjustment on VP finished lubricants of approximately 4 to 8%, percentages will vary by product. The increase will be effective on orders placed on or after June 18, 2018.


Old World Industries announced that it will raise the price on all finished lubricants by 4% to 9%. The increase is effective June 30, 2018. Old World says the increase is a result of the continued increase in the cost of raw materials used in the manufacturing and distribution of these products.

See table and chart below for complete list of recent price increases JobbersWorld reports. 

Dennis K Burke Becomes Northeast Distributor for Phillips 66/Kendall Lubricants

Dennis K Burke announced that it is now the Phillips 66/Kendall Lubricants distributor for the Northeast. The company says, “Kendall has been on the forefront of advances in lubricant product technology since the early 1900’s and we are excited to be able to offer their premium, cutting edge products to our customers.”

SOURCE Dennis K. Burke, Inc.


Shell Launches Artificial Intelligence Chatbot For B2B Lubricants Customers and Distributors

Shell Lubricants has introduced Shell LubeChat, the first artificial intelligence (AI)-powered chatbot tool for B2B lubricants customers. Shell LubeChat is an online chat robot that is designed to give users around the world easy, real-time access to product support, technical services and lubricants data. Currently available in the United States, China and India, this service will also launch in the United Kingdom in the coming weeks and other markets later in the year.

BlogPic1234“Customers and distributors are at the heart of our business here at Shell. We are continually investing in new solutions and services that make their lives easier and more convenient, and we expect digital platforms to play a key role moving forward,” said Roger Moulding, Vice-President of Shell Lubricants Marketing.

Shell LubeChat can be used across a wide range of businesses and sectors, including general manufacturing, construction, agriculture, power and fleet. Designed to help optimize efficiency for our customers and distributors, Shell LubeChat, alongside the entire suite of Shell Lubricants Services, can help solve day-to-day challenges like obtaining access to information quickly. The platform is equipped to help users in a variety of ways, including finding the right product for their equipment, accessing Technical and Safety data sheets on Shell Lubricants products, learning through case studies how others have helped improve their operations with Shell Lubricants products, getting the recommended Shell alternative to other products in the market, and finding authorised distributors closest to them. More

Valvoline to Acquire Great Canadian Oil Change, its First International Quick-Lube Acquisition

Valvoline Inc., a leading worldwide supplier of premium branded lubricants and automotive services, announced that it has signed a definitive agreement to acquire the business assets of Great Canadian Oil Change, which franchises 73 quick-lube stores in five Canadian provinces, primarily in British Columbia and Saskatchewan. The acquisition is expected to be completed within 60 days. Financial terms were not disclosed.

Great Canadian Oil Change, based in Chilliwack, British Columbia, was founded in 1978 and is the third largest quick-lube system in Canada. The acquisition will expand Valvoline’s existing quick-lube network to more than 1,200 company-owned and franchised locations.

“Growing and strengthening our quick-lube network through organic store expansion and high-quality acquisitions in both core and new markets is a key business strategy for Valvoline,” said Sam Mitchell, chief executive officer. “The addition of Great Canadian Oil Change, with its established brand – which we intend to keep in place – and loyal customer base, provides us with an excellent opportunity to expand our quick-lube footprint outside the U.S.”

“Owners Trevor and Carolynn Weflen have spent 40 years developing the Great Canadian Oil Change brand and building its reputation in the Canadian marketplace,” said Tony Puckett, president, Valvoline Quick Lubes. “We’ve developed a strong relationship with Great Canadian Oil Change over the years through our Canadian installer business team and blending and packaging plant in Mississauga, and look forward to working with Great Canadian Oil Change’s large and experienced franchise-owner base to further grow and improve the business. We believe there is significant opportunity for system growth through both support of franchisees and company-owned store expansion.”

“Great Canadian Oil Change has been part of our family since 1978, and we are extremely proud of the brand we’ve built and the growth we’ve achieved,” said Trevor Weflen, owner of Great Canadian Oil Change. “Although the decision to sell was difficult, we are very confident that Valvoline is the right steward for the Great Canadian Oil Change brand and our franchisees going forward. Valvoline is a 150-year-old company that has a long, successful history of taking care of its people, franchisees and customers. We know Valvoline is dedicated to the growth and success of the brand and every franchisee.”


LubeQuiz
Where’s the Dipstick?

 

20180428_144602I recently visited a working farm and had the pleasure of seeing a number of old farm tractors that, in spite of their age, were still pulling their weight and significantly more. One of the more intriguing tractors was the one to the right. When asked when this tractor last ran, I was told to sit in the seat, shake the shifter to make sure it was not in gear, pull out the knob on a steel plate, and advance the throttle a bit. The farmer than turned a petcock to open a gas line and engaged a crank in the front of the engine. After giving it only one hard crank, the engine came to life and was purring like a kitten; no smoke, knocking, pinging, clicking, clacking, spitting or sputtering. And after a short ride in the field, it was clear that this was, aside from its age and rusty appearance, a well-maintained machine that was built to last.

The next interesting experience came when I asked how to check the oil in the tractor below, since, for the life of me, I could not figure it out. Whereas I was schooled on the basics of vintage tractors when he showed me how to check the oil, I wonder how many in our industry would know.

-Tom Glenn

LubeQuiz
  1. How do you check the oil level in this tractor?
  2. As a bonus, what type of oil do you think is used in this tractor and the one that he cranked to start?

JobbersWorld will publish the names and the companies they work for of the first three who get it right. Send your answers to lubequiz@jobbersworld.com.

20180428_144840

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 5 to 9%
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%
Old World Industries 5/24/2018 6/30/2018 4 to 9%

IncreaseTimeline5242018R3

 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

TimelineLong5222018

Update: U.S. Lubricants Price Increase

Understanding there is more than one company with the name U.S. Lubricants operating in the US, to avoid confusion, please note that the U.S. Lubricants price increase JobbersWorld reported on yesterday is for U.S Lubricants, located in Commerce, California. This is not the same company, nor is it associated with U.S. Lubricants in Appleton, Wisconsin, a division of U.S. Venture, Inc., a privately-owned leader in the distribution of fuels (diesel, gasoline, biofuels, and compressed natural gas), passenger and commercial vehicle tires, parts, and other transportation products, as well as passenger car, commercial/heavy duty, industrial, and metalworking lubricants.

Add Four More to Round 3 of Price Increases

Chemlube International announced today it will implement a 5 to 9% price increase on its Savannah lubricant products. The increase is effective June 11, 2018. Chemlube attributes the increase to the rising costs of raw materials used to manufacture its products.

Axel Royal announced yesterday it will implement a 5% price increase on most of its products including greases. The increase becomes effective June 24, 2018.

Amalie announced on May 18th that due to the continued increases in raw material costs that it will be implementing a price increase across-the-board of $0.40 per gallon for all oil and automotive chemical products, including its Greased Lightning branded products. Amalie will also increase its grease products by $0.05 per pound for all greases and it will increase its Brake Fluid products by $0.48 per gallon. The increase is effective June 17, 2018.

U.S. Lubricants announced on May 18th that due to the continued increases in raw material costs that it will be implementing a price increase across-the-board of $0.40 per gallon for all oil and automotive chemical products. U.S Lubricants will also increase its grease products by $0.05 per pound for all greases and it will increase its Brake Fluid products by $0.48 per gallon. The increase is effective June 17, 2018.

See the bottom of page for a complete table of all price increases reported by JobbersWorld in Round 3, 2018.


Note: Yesterday, JobbersWorld reported that D-A Lubricants announced on May 15, 2018, it will be implementing a price increase on its lubricants and greases by up to 10%. The increase goes into effect on June 11, 2018. D-A Lubricants attributes the price change to the rising raw material costs associated with manufacturing and distribution of its products. As a point of clarification, it should be noted that this is D-A Lubricants’ second price increase in 2018 and not its third.


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 5/18/2018 6/17/2018 $0.40/gal lubricants
$0.05/lb greases
Axel Royal 5/21/2018 6/24/2018 5%

IncreaseTimeline5222018R3

 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

TimelineLong5222018

%d bloggers like this: