Report on Retail Lubricant Prices

JobbersWorld Brings Back its Retail Price Tracker

jwrptFor those who have been with JobbersWorld since its inception in 2001, you may remember we provided a retail price tracker “Stats and Facts” in each of our monthly issues. Whereas JobbersWorld continued to track retail prices over the years, the price tracker was not carried over when we switched from a print to an electronic version of JobbersWorld.  Well its back!

Moving forward, JobbersWorld will report on retail prices at the leading big box store and prices at five of the leading auto parts stores. The tracker includes prices by brand and category (synthetic, synthetic blend, high mileage, and conventional).

CLICK FOR MARCH 2017 PRICES

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Summary: Round 2 Price Increases

Although Amalie was the first to announce a lubricant price increase in round 2 of 2017, CAM2, Allegheny Petroleum, Kleen Performance Products were the first to move with each having price increases taking effect on April 17th. Valvoline is the last to move with an effective date of June 1 for its price increase.

The lubricant price increases announced by majors and independent lubricant manufacturers in Round 2 of 2017 ranged from 3 to 12%. The average increase is 4.3% for the majors, and 6.5% for the independents, and the combined average is 5.8%.

With a range of 19 to 51 days, there is an average of 31 days from the time a company announced a price increase to the effective date of the increase. The longest span from the announced to effective date is seen with the majors at an average of 40 days. The average time span for the independents is 25 days.

IncreaseChart4182017

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Table 2

PRICE INCREASES REPORTED ON BY JOBBERSWORLD
IN ROUND 2 OF 2017

Lubricant Manufacturers Round 2

Company Announced
Date
Effective
Date
Increase
Amalie 3/17/2017 4/21/2017 24 cpg lubes, 3 cpp grease
Calumet 3/20/2017 4/20/2017 4 to 6%
Castrol (excluding industrial) 3/22/2017 5/1/2017 up to 3%
CAM2 3/23/2017 4/17/2017 20 to 35 cpg
Warren Distribution 3/24/2017 4/24/2017 6 to 9%
Smitty’s Supply 3/24/2017 4/24/2017 4 to 6%
Chemlube 3/27/2017 4/20/2017 4 to 7%
Pinnacle Oil 3/28/2017 4/18/2017 5 to 9%
Reliance Fluid Technologies (RFT) 3/28/2017 4/28/2017 6 to 9%
Old World Industries (PEAK) 3/28/2017 4/21/2017 up to 8%
Allegheny Petroleum 3/28/2017 4/17/2017 20 to 35 cpg
Warren Oil Company 3/28/2017 4/24/2017 4 to 9%
Kleen Performance Products 3/29/2017 4/17/2017 5 to 12%
ExxonMobil 3/31/2017 5/10/2017 up to 4%
Royal Mfg 4/1/2017 5/1/2017 4 to 8%
Chevron 4/3/2017 5/15/2017 4 to 6%
Advanced Lubrication Specialties (ALS) 4/3/2017 4/24/2017 5 to 9%
Nu-Tier Brands 4/4/2017 4/24/2017 4 to 7%
Phillips 66 4/5/2017 5/10/2017 4 to 6%
Petro-Canada 4/5/2017 5/5/2017 up to 6% (excluding white oils and process oil)
SOPUS/Shell 4/10/2017 5/15/2017 up to 4%
CITGO 4/11/2017 5/15/2017 4 to 6%
Valvoline 4/11/2017 6/1/2017 up to 4%

 Increase3282017Big2 

2017 Price Increase Timeline – Lubricant Manufacturers
Round 2
Increase4132017

Add CITGO and Valvoline to Round 2

Effective May 15, 2017, CITGO will implement a general price increase of up to 4% to 6% on its branded and private label lubricants. CITGO  says the increase is driven primarily by escalations in base oil and additive costs occurring over the past several months.

Valvoline announced an increase of up to 4% on its branded lubricant products. This increase takes effect June 1, 2017. Valvoline attributes this adjustment to increases in the cost of raw materials and higher manufacturing and distribution costs.

The average time from the date the lubricant manufacturers JobbersWorld reported on in Round 2 – 2017 to the effective date of the increases is 20 days. Interestingly, there is a significant difference in the number of days from announcement to effective dates between the majors and other blenders, as illustrated below and shown in Table 1.

CLICK FOR LARGER IMAGE

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Table 2

PRICE INCREASES REPORTED ON BY JOBBERSWORLD
IN ROUND 2 OF 2017

Lubricant Manufacturers Round 2

Company Announced
Date
Effective
Date
Increase
Amalie 3/17/2017 4/21/2017 24 cpg lubes, 3 cpp grease
Calumet 3/20/2017 4/20/2017 4 to 6%
Castrol (excluding industrial) 3/22/2017 5/1/2017 up to 3%
CAM2 3/23/2017 4/17/2017 20 to 35 cpg
Warren Distribution 3/24/2017 4/24/2017 6 to 9%
Smitty’s Supply 3/24/2017 4/24/2017 4 to 6%
Chemlube 3/27/2017 4/20/2017 4 to 7%
Pinnacle Oil 3/28/2017 4/18/2017 5 to 9%
Reliance Fluid Technologies (RFT) 3/28/2017 4/28/2017 6 to 9%
Old World Industries (PEAK) 3/28/2017 4/21/2017 up to 8%
Allegheny Petroleum 3/28/2017 4/17/2017 20 to 35 cpg
Warren Oil Company 3/28/2017 4/24/2017 4 to 9%
Kleen Performance Products 3/29/2017 4/17/2017 5 to 12%
ExxonMobil 3/31/2017 5/10/2017 up to 4%
Chevron 4/3/2017 5/15/2017 4 to 6%
Advanced Lubrication Specialties (ALS) 4/3/2017 4/24/2017 5 to 9%
Nu-Tier Brands 4/4/2017 4/24/2017 4 to 7%
Phillips 66 4/5/2017 5/10/2017 4 to 6%
Petro-Canada 4/5/2017 5/5/2017 up to 6% (excluding white oils and process oil)
SOPUS/Shell 4/10/2017 5/15/2017 up to 4%
CITGO 4/11/2017 5/15/2017 4 to 6%
Valvoline 4/11/2017 6/1/2017 up to 4%

  


2017 Price Increase Timeline – Lubricant Manufacturers
Round 2
Increase4132017

Lubricant Additive Prices Increase

Lubrizol announced it will increase the price of its additives in most product segments by 7% effective March 20, 2017.

Infineum USA announced an increase for most of its lubricant additives by up to 4%. The Infineum increase is effective February 27, 2017. Both Lubrizol and Infineum attribute the increases to significantly higher cost of raw materials.

For those unfamiliar with lubricant blending, additives (DI and VI) account for roughly 15% of the volume of material used to make a quart of motor oil and roughly 50% of the additive is base oil used as a diluent/carrier for the additives. Based on the recent increases in the price of base oils alone, it becomes clear why additive prices are moving up. Factors driving the increases become even more apparent when one looks at how the price of other raw materials used in additive manufacturing have risen over the past year.

When taken together, the recently announced increases in the price of base oil and additives are pushing the price of finished motor oils up by roughly 40 to 50 cpg in the first quarter of 2017. But the higher cost of base oil and additives alone do not tell the full story. This is because lubricant manufacturers are also seeing higher costs on packaging, transportation, and other raw materials and operating costs.

So hang on to your hat. It looks like 2017 is off to an interesting start.

D-A Lubricant Announces Lubricant Price Increase

D-A Lubricant Company announced it will increase the price of its lubricants from 5 to 6%. The increase is effective March 20, 2017.

Company Announced
Date
Effective
Date
Increase
Shell 1/16/2017 2/20/2017 5%
Reliance Fluid
Technologies (RFT)
1/17/2017 2/13/2017 6 to 8%
Warren Oil Company 1/20/2017 2/20/2017 Bulk: $0.15/gal
Packaged $0.20/gal
Grease $0.05/lb
CAM2 1/20/2017 2/13/2017 5 to 8%
Smitty’s Supply 1/20/2017 2/13/2017 5 to 8%
Chevron 1/20/2017 3/6/2017 Lubricants and Greases
up to 5%
Warren Distribution 1/23/2017 2/27/2017 5 to 8%
Old World Industries
(PEAK)
1/23/2017 2/13/2017 up to 8%
ExxonMobil 1/23/2017 2/22/2017 Lubricants and Greases
up to 5%
Total 1/23/2017 3/1/2017 up to 4%
Safety-Kleen 1/24/2017 2/15/2017 5 to 9%
Chemlube 1/25/2017 2/15/2017 5 to 7.5%
Phillips 66 1/25/2017 2/27/2017 Lubricants and Greases
up to 5%
Nu-Tier 1/25/2017 2/20/2017 5 to 8%
CITGO 1/27/2017 3/1/2017 3 to 5%
Advanced Lubrication Specialties (ALS) 1/27/2017 2/20/2017 5 to 8%
Valvoline 1/27/2017 3/1/2017 up to 5%
Allegheny Petroleum 1/31/2017 2/20/2017 $0.25 a gallon
Castrol 2/3/2017 3/20/2017 up to 5%
 D-A Lubricant 2/20/2017 3/20/2017  5 to 6%

Click Timeline to Enlarge Image

priceincrease2212017

Add One More to Round Two of Price Increases

Smitty’s Supply announced today that due to increases in the cost of raw materials used in the manufacturing of finished lubricants, it will increase the price of both its bulk and packaged lubricants.

Bulk and packaged lubricant prices will be increased by 6 to 10% a gallon (depending on product). Greases prices will increase by $0.03 pound. Pour in Treatments will be increased by $0.05 per unit,

These increases are effective July 18, 2016.

Antifreeze, washer solvents, brake fluid, and DEF will be excluded from this price increase.

Like many other lubricant manufacturers, this is round two of recent price increases for Smitty’s. As shown in the table below, Smitty’s first of the year was announced on May 18th.

PriceIncrease762016

Lubricant Price Decreases

Price DecreaseWith the price of crude the lowest it has been in 11 years, and the price of gasoline at levels not seen since the 1990s, it should come as no surprise that several majors have recently announced price decreases on finished lubricants.

The first to announce price decreases were ExxonMobil and Castrol.

ExxonMobil advised its marketers on February 9th that effective February 26, 2016, they would decrease the price of its branded and unbranded lubricants and greases by up to 3%.

On the same day, Castrol announced a 2% price decrease on its passenger car and commercial lubricants. This decrease is effective March 14, 2016.

Valvoline followed when it announced a price decrease on Tuesday of this week. Valvoline advised its marketers that effective March 1, 2016, it will decrease prices on lubricant products by up to 2%.

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