More Price Increases and ARG Announces Blended Lubricants Team

Four More Price Increases

With nearly all major lubricant manufacturers announcing adjustments, the first round of finished lubricant price increases in 2018 will make its mark in the history books.  The first announcement JobbersWorld reported on came when CAM2 announced on January 12th that it was pushing through a price increase effective February 5th. This was soon followed by Shell and within three days of the first announcement, most lubricant manufacturers also announced with ExxonMobil only seven days after Shell. Importantly, however, although CAM2 was the first to announce, CAM2, Advanced Lubrication Specialties, and Chemlube, with and effective date of February 5th, are the first to move.  A summary of the most recent price increase announcements are shown below and that’s followed by a summary of all finished lubricant price increases JW reported in the first round for 2018.

  • Old World announced it will raise finished lubricant prices by 6 to 10%. The increase is effective February 12, 2018. Old World attributes the increase to recent increases in raw material and distribution costs.
  • BP Lubricants USA (Castrol) advised its customers of up to 6% price increase on Castrol and BP branded pasenger car, commercial and synthetic lubricants excluding industrial This increase is effective March 12th. BP Lubricants attributes the adjustment to escalation in the costs of base oils, additives, packaging, and transportation.
  • CITGO announced a price increase of 5 to 8% for all of its branded and unbranded lubricant products ordered on or after February 23rd. The price adjustment is attributed to industry wide increases in the cost of base oil and additives.
  • Petro-Canada advised its customers of up to a 6% lubricant price increase across-the-board, excluding process oils and Purity FG white oils, which will increase $0.10 cents per gallon. This increase is effective February 23rd.

As of today, the list of companies JobbersWorld reported on that have announced lubricant price increases in 2018 is shown below:

Company
Announced Date
Effective Date
Increase
CAM2 1/12/2018 2/5/2018 6 to 10%
SOPUS Products (Shell Lubricants) 1/15/2018 2/19/2018 up to 5%
Advanced Lubrication Specialties (ALS)
1/16/2018 2/5/2018 6 to 10%
Sinclair Lubricants 1/17/2018 3/1/2018 up to 6%
Chemlube 1/18/2018 2/5/2018 $0.20 to 0.25/gal
Nu-Tier Brands 1/18/2018 2/19/2018 6 to 8%
Martin Lubricants 1/18/2018 2/16/2018 4 to 7%
Safety-Kleen 1/18/2018 2/19/2018 5 to 8%
Pinnacle Oil 1/19/2018 2/6/2018 6 to 10%
Royal Mfg 1/22/2018 2/26/2018 5 to 8%
ExxonMobil 1/22/2018 2/26/2018 up to 6%
Reliance Fluid Technologies (RFT) 1/22/2018 2/26/2018 5 to 9%
Chevron 1/22/2018 3/1/2018 up to 5%
CITGO 1/23/2018 2/23/2018 5 to 8%
Petro-Canada 1/24/2018 2/23/2018 Lubricants up to 6%
Process Oils and Purity FG White Oils $0.10/gal
Warren Distribution 1/24/2018 2/26/2018 6 to 9%
Smitty’s Supply 1/24/2018 2/12/2018 lubricants 6 to 10%
Greases 3cpp
Phillips 66 1/25/2018 3/5/2018 up to 5%
Old World Industries 1/29/2018 2/12/2018 6 to 10%
BP Lubricants USA (Castrol excluding industrial) 1/29/2018 3/12/2018 up to 6%

IncreaseTimeline1302018

ARG Announces Blended Lubricants Team

American Refining Group Inc. Announced the Team that will Lead its Sales of Blended Lubricants

BL Team sign

The American Refining Group Inc. Blended Lubes Team comprises (from left)  Mike Greene, Luke Rawding, Todd Cawley and Cody Leatherman.

The American Refining Group announced today that ARG’s customers – existing, new and potential – can turn to this team for all of their blended-lubricant needs. Supported by dozens behind the scenes, the team’s industry knowledge and experience forms the foundation of ARG’s partnership with its customers. The sales team that will move ARG forward to grow and develop business with premium specialty lubricants included:

Todd Cawley Business Manager – Blended Lubricants Todd Cawley will draw on decades of industry experience in working closely with customers and distributors throughout the world to supply them with top-quality blended lubricant products.

Cody Leatherman Product Manager – Base Oils and Blended Lubricants Cody Leatherman began his career seven years ago as a research chemist formulating specialty lubricants. He has supervisory experience in research and development, quality control and technical services. He will focus on aligning products with industry and customer needs, cultivating relationships and conducting industry training for our customers.

Luke Rawding Regional Sales Manager Luke Rawding has more than 12 years of lubricant industry experience specializing in account management and new growth, particularly in production and machining in both the U.S. and Canada. His skills also include product application, inventory management and cost savings.

Mike Greene Focusing on mutually beneficial and logistically advantaged private-label business is Account Specialist Mike Greene. He also heads up ARG’s Kendex® OCTG accounts and many of our export accounts. He holds a master’s degree and nine years of industry experience.

CLICK FOR MORE ON ARG

News on the Wire

More Price Increases and Valvoline Announces New Product

Phillips 66 and Total Lubricants Announce Increases

Phillips 66 Lubricants announced it will raise finished lubricant prices by up to 5%. The increase is effective March 5, 2018. Phillips attributes the increase to recent increases in raw material costs.

Total Specialties USA advised its customers of a 4 to 8% price increase on TOTAL branded lubricants. This increase is effective February 26th. Total attributes the adjustment to escalation in the costs of base oils, additives, and other raw materials used in the manufacturing of lubricants.

Allegheny Petroleum announced a price increase of $0.25 a gallon for all of its lubricant products ordered on or after February 26th.  The price adjustment is attributed to industry wide increases in the cost of raw materials.

As of today, the list of companies JobbersWorld reported on that have announced lubricant price increases in 2018 is shown below:

Company
Announced Date
Effective Date
Increase
CAM2 1/12/2018 2/5/2018 6 to 10%
SOPUS Products (Shell Lubricants) 1/15/2018 2/19/2018 up to 5%
Advanced Lubrication Specialties (ALS)
1/16/2018 2/5/2018 6 to 10%
Sinclair Lubricants 1/17/2018 3/1/2018 up to 6%
Chemlube 1/18/2018 2/5/2018 $0.20 to 0.25/gal
Nu-Tier Brands 1/18/2018 2/19/2018 6 to 8%
Martin Lubricants 1/18/2018 2/16/2018 4 to 7%
Safety-Kleen 1/18/2018 2/19/2018 5 to 8%
Pinnacle Oil 1/19/2018 2/6/2018 6 to 10%
Royal Mfg 1/22/2018 2/26/2018 5 to 8%
ExxonMobil 1/22/2018 2/26/2018 up to 6%
Reliance Fluid Technologies (RFT) 1/22/2018 2/26/2018 5 to 9%
Chevron 1/22/2018 3/1/2018 up to 5%
Warren Distribution 1/24/2018 2/26/2018 6 to 9%
Smitty’s Supply 1/24/2018 2/12/2018 lubricants 6 to 10%
Greases 3cpp
Phillips 66 1/25/2018 3/5/2018 up to 5%
Total Specialties USA 1/26/2018 2/26/2018 4 to 8%
Allegheny Petroleum 1/26/2018 2/26/2018 $0.25/gal

Increase1262018Timeline

Valvoline Introduces New Modern Engine Full Synthetic Motor Oil

valvpic1262018Valvoline, a leading worldwide supplier of premium branded lubricants and automotive services unveiled another innovative new product with the introduction of Valvoline™ Modern Engine Full Synthetic Motor Oil. This new product is specifically engineered to protect against carbon build-up in Gasoline Direct Injection (GDI), turbo and other engines manufactured since 2012.

ScreenHunter_4115 Jan. 26 19.07“For over 150 years, Valvoline has been at the helm of product innovation, meeting consumer needs with smart science and solutions. Our team is leading the industry with the launch of Valvoline Modern Engine,” said Heidi Matheys, Valvoline chief marketing officer. “As part of our full synthetic portfolio, Modern Engine will combat potential carbon build-up in newer engines – an issue that degrades vehicle performance. Most consumers are unaware that the issue even exists, even though it has the potential to impact roughly 100 million newer vehicles on the road today.”

The company says that engines in vehicles 2012 and newer are built smaller and more efficient than ever. As a result, they run hotter, and are more susceptible to developing Low Speed Pre-Ignition (LSPI) knocking due to abnormal combustion, as well as fuel and oil related carbon build-up.  These issues could lead to power and fuel economy loss – and ultimately, engine breakdown.

Commenting on the launch of Valvoline Modern Engine Full Synthetic Motor Oil, Fran Lockwood – chief technology officer at Valvoline, said: “Valvoline Modern Engine captures key learnings from extensive research on how motor oil formulation – namely oil properties and additive composition – not only influence but can actually help prevent the formation of carbon deposits in the newest engine models.

For more information on Valvoline Modern Engine Synthetic Motor Oil, please visit ModernOil.com.

RelaDyne Acquires Conservancy Oil Group, More Price Increases

RelaDyne Acquires Conservancy Oil Group of New Mexico and Colorado

RelaDyne, one of the nation’s leading providers of lubricants, fuel, diesel exhaust fluid (DEF), and industrial reliability services, has acquired Conservancy Oil Group, a leading regional distributor of lubricants, DEF and related products based in New Mexico. This acquisition extends RelaDyne’s geographical footprint into Southwestern United States.

Founded in 1936, Conservancy Oil Group is the premier supplier of lubricants, coolants, DEF and chemicals in the Southwest. With four locations spanning New Mexico and Colorado, Conservancy Oil serves the automotive, commercial, and industrial markets.

“Our partnership with RelaDyne marks a new, and exciting era for Conservancy Oil,” said John Mayer, CEO of Conservancy Oil Group. “We are thrilled to partner with such a well-established company whose culture and values align so well with the foundation of Conservancy Oil. The infrastructure and capital that RelaDyne has to offer our team and our valued customers will greatly enhance the product offering and levels of service we can provide. We feel fortunate to be part of a company that is changing the landscape of lubricant distribution. Our combined strengths in the New Mexico and Colorado markets will allow us to accelerate our growth plans while providing more opportunities for our wonderful team and loyal customers.”

John Mayer of Conservancy Oil Group and Larry Stoddard of RelaDyne.

“The closing of the Conservancy Oil Group acquisition is the result of our substantial efforts to grow our existing footprint to include Southwest United States,” stated Larry Stoddard, RelaDyne President and CEO. “With the existing capabilities of Conservancy Oil Group and the resources RelaDyne can provide, I am very confident in the future. We welcome the Conservancy Oil team to RelaDyne!”

RelaDyne continues to be the “Acquirer of Choice” in the lubricants, fuel, and reliability segments. “The acquisition of Conservancy Oil Group is the first of many in 2018 for RelaDyne,” said RelaDyne CSO, Jeff Hart. “We are continually looking to acquire leading businesses with great people and great customers – Conservancy Oil Group and their stellar reputation is truly a perfect example of this. RelaDyne has made significant investments in acquiring great companies and in our ability to integrate and grow these companies once they join RelaDyne. This dedication to integration and growth at RelaDyne has allowed us to accelerate our acquisition pace as we continue to create a national distribution platform.”

About Conservancy Oil Group

Conservancy Oil Group is a leading, multi-branded lubricant distributor serving customers across New Mexico, Colorado, and southern Utah. With a portfolio of products to serve the automotive, commercial, and industrial markets, Conservancy is a well-established marketer in the Southwest region. Those interested in more information can contact the Albuquerque, New Mexico; Las Cruces, New Mexico; Grand Junction, Colorado; and Durando, Colorado offices to learn more about the lubrication products, services and equipment offered.

About RelaDyne

RelaDyne, headquartered in Cincinnati, Ohio, is one of the nation’s leading providers of lubricants, fuels, diesel exhaust fluid (DEF), and reliability services for industrial, commercial, and automotive businesses in the United States. RelaDyne was formed in 2010 by the combination of four well-established industry-leading companies and has since grown to more than 60 locations by strategically acquiring other industry leaders in the lubricant, fuel distribution, and industrial service segments. For more information, visit www.RelaDyne.com.

More Price Increases

Warren Distribution announced a price increase of 6 to 9% on all its lubricants. The increase is effective February 26, 2018. Warren attributes the increase to the higher cost of raw materials and transportation.

Smitty’s Supply announced it will increase the price of its bulk and packaged lubricants by 6 to 10%, and its greases by 3 cents per pound (cpp). The increase will go into effect on February 12, 2018. Smitty’s attributes the increase to the rising cost of raw materials used in manufacturing lubricants and greases.

Nu-Tier Brands announced that effective February 19, 2018, it will implement an increase of 6 to 8% on its finished lubricants. Nu-Tier attributes the increase to the higher cost of raw materials and manufacturing.

Reliance Fluid Technologies (RFT) advised its customers that due to the increase in cost of base oils, additives, packaging and transportation, it will increase its prices on its products by 5 to 9%. The increase goes into effect February 26, 2017.

As of today, the list of companies JobbersWorld reported on that have announced lubricant price increases in 2018 is shown below:

Company
Announced Date
Effective Date
Increase
CAM2 1/12/2018 2/5/2018 6 to 10%
SOPUS Products (Shell Lubricants) 1/15/2018 2/19/2018 up to 5%
Advanced Lubrication Specialties (ALS)
1/16/2018 2/5/2018 6 to 10%
Sinclair Lubricants 1/17/2018 3/1/2018 up to 6%
Chemlube 1/18/2018 2/5/2018 20 to 25 cpg
Nu-Tier Brands 1/18/2018 2/19/2018 6 to 8%
Martin Lubricants 1/18/2018 2/16/2018 4 to 7%
Safety-Kleen 1/18/2018 2/19/2018 5 to 8%
Pinnacle Oil 1/19/2018 2/6/2018 6 to 10%
Royal Mfg 1/22/2018 2/26/2018 5 to 8%
ExxonMobil 1/22/2018 2/26/2018 up to 6%
Reliance Fluid Technologies (RFT) 1/22/2018 2/26/2018 5 to 9%
Chevron 1/22/2018 3/1/2018 up to 5%
Warren Distribution 1/24/2018 2/26/2018 6 to 9%
Smitty’s Supply 1/24/2018 2/12/2018 lubricants 6 to 10%
Greases 3cpp

 

Shell Announces Price Increase

The First Major to Move

For those who read the issue of JobbersWorld published on Friday, January 12th, it’s clear that at least two lubricant manufacturers were working their financial spreadsheets and evaluating various courses of action to address the base oil and additive price increases taking effect this month. This became clear only hours after we published that issue when Cam2 announced a price increase. See JW Evening Edition  – Jan-12. Next was Shell.

SOPUS Products (Shell Lubricants) announced today that it will increase the price of its finished lubricants by up to 5%. The increase goes into effect on February 19, 2018. Shell attributes the move to increasing costs of raw material and delivery of its products.

Lube-Tech Auto Parts, LLC Merges with Mighty Auto Parts Distribution Franchise

Lube-Tech Expands Customer Offering in the Green Bay & Appleton, WI Market

Lubetech2Lube-Tech & Partners announced a merger between Lube-Tech Auto Parts, LLC (a division of Lube-Tech & Partners, LLC) and Mighty Auto Parts franchise of Greenville, WI. Under the terms of the agreement, Lube-Tech & Partners now has an exclusive license to distribute Mighty automotive products throughout all of Wisconsin and most of Iowa and Minnesota.

Founded in 1963, Mighty Distributing System of America is a Norcross, Georgia-based franchisor with 109 distributors in 44 states and four international markets. Mighty is a premier supplier of high quality aftermarket products and inventory control services exclusively to automotive professionals. The Mighty partnership provides Lube-Tech with additional products and services to deepen relationships with new car dealers and automotive service centers. Lube-Tech automotive customers in the northeastern WI market will now have access to Mighty’s signature inventory management services and full range of preventive maintenance products including filtration, wipers, lighting products, batteries, brakes, belts, shop supplies and chemicals.

Mighty Merger Signing

(Left: Dave Berlick – Mighty Auto Parts Greenville, WI franchise owner; Right: Andrew Haag – Lube-Tech Automotive Market Manager)

“The Mighty partnership expands the offering of products and services we bring to our customers in the Wisconsin Fox Valley marketplace,” says Dave Stascavage, Lube-Tech & Partners President. “Mighty allows us to increase customer value by helping customers become more profitable and proficient as providers of automotive maintenance services. In addition to helping customers realize cost savings through improved inventory management, we are also able to offer high-quality preventive maintenance products.”

“The synergies between Mighty and Lube-Tech & Partners provide us with a complete product offering to better service the automotive aftermarket”, says Dave Berlick, owner of the Mighty Auto Parts Greenville franchise. “We look forward to the opportunity to better serve our customer base.”

Andrew Haag, Automotive Market Manager for Lube-Tech & Partners states, “We are very excited to bring on the talent of the entire Mighty Auto Parts team in Greenville. Their knowledge and expertise will be a great asset to our automotive customers in the Green Bay and Appleton area, as well as the rest of our sales team.”

Lube-Tech remains committed to delivering “peace of mind” to its customers by providing solutions that help them improve performance and their bottom-line through consultative support and one-stop shopping for lubricants, chemicals, energy solutions, recycling, fluid handling equipment and automotive aftermarket products and inventory control services.

About Lube-Tech & Partners, LLC
Lube-Tech & Partners was formed in June 2016 by the founding companies of Boyer Petroleum (Des Moines, IA), Lubrication Technologies (St. Paul, MN), and Moore Oil (Milwaukee, WI). The merged organization has built upon the founders’ long history of an employee-centric, customer-focused approach to business. As the Midwest’s go-to resource for advanced lubrication and energy solutions, Lube-Tech’s mission is to help customers accelerate their performance – from their engines and equipment to their bottom line – while continuously improving employees’ lives and investing in the community. Based in St. Paul, MN, Lube-Tech & Partners has operations in Iowa, Minnesota, and Wisconsin and serves commercial, automotive and industrial customers. The company produces and distributes millions of gallons of lubricants and chemicals and employs over 200 people. For more information, visit www.lubetech.com.

About Mighty Distributing System
Mighty Distributing System, a franchisor of sales and services in aftermarket auto parts, is headquartered in Norcross, Georgia and supports 109 distributors in 44 states and four international markets. The Mighty System features attentive local service, inventory management expertise, classroom and on-site training in conjunction with extensive offerings of OE quality underhood and undercar parts, chemical products, lubricants and shop supplies. The Mighty business model attracts independent repair shops, quick lubes, tire centers and new car dealerships across the nation and abroad. Recognized as a “top 25 franchise brand” by The Wall Street Journal, Mighty’s unique approach of dealing directly and exclusively with automotive professionals began in 1963.

The FTC Issues Advance Notice of Proposed Rulemaking; Request for Public Comment on Recycled Oil Rule

 The Federal Trade Commission (FTC) requests public comment on the overall costs, benefits, and regulatory and economic impact of its rule specifying Test Procedures and Labeling Standards for Recycled Oil.

The Recycled Oil Rule contains testing and labeling requirements for recycled engine oil. The of the rule is to encourage used oil recycling, promote recycled oil use, reduce new oil consumption, and reduce environmental hazards and wasteful practices associated with used oil disposal.

CLICK FOR MORE

News On the Wire

Evening Edition: Cam2 announces a Price Increase

2018: Cam2 Announces Price Increase

For those who read the issue of JobbersWorld published only hours ago, it’s clear that at least one lubricant manufacturer was working their financial spreadsheets and evaluating various courses of action to address the base oil and additive price increases taking effect this month.

Cam2 announced today that it will increase the price of its bulk and packaged lubricants and greases by 6 to 10%. The increase goes into effect on February 5, 2018.

ELM’s Biobased Lubricants Debut in Japan

Environmental Lubricants Manufacturing, Inc., a leading US manufacturer of biobased grease and lubricants, announced on January 9, 2018 an exclusive distributor agreement with Chugoku Kogyo Co., Ltd., Hiroshima, as nationwide distributor of ELM products. Prior to this venture, the two companies invested time studying the Japanese lubricants market potential for biobased grease and lubricants in Japan. ELM and Chugoku Kogyo engineers also spent time at each other’s sites for training and information exchange in Iowa and in Hiroshima.

“We found the Chugoku Kogyo management team is committed to environmental stewardship and is determined to sell, and eventually transfer biobased technologies to Japan,” said Dr. Lou Honary, ELM Chairman and President. Additionally, as a respected lubricant manufacturer and supplier in Japan, Chugoku Kogyo Co., Ltd., has a salesforce and the resources in place to deliver biobased products efficiently within diverse Japanese markets.”

ELMPhot

Mr. Ryuichi Sakai, President and CEO of Chugoku Kogyo Co., states that “…ELM’s history of biobased lubricants technology, originating from university based research, and their revolutionary microwave based process adds credence to ELM’s ability to support the needs of Chugoku Kogyo clients. Our goal is to work cooperatively toward selling and eventually manufacturing ELM’s biobased products in Japan.”

Both executives believe Japan’s market is ready for biobased products. While there is awareness of environment friendly products, concerns over cost and performance have hindered progress so far. ELM’s patented microwave based grease processing has reduced the cost of biobased greases to parity with their mineral oil counterparts. ELM’s biobased grease products meet some of the most stringent industry standards including the NLGI LB and GC-LB ratings. With the marketing and sales resources of Chugoku Kogyo Co., it is expected that biobased grease and lubricants products will become a growing commodity in Japan.

About ELM:
Founded in 2000 by Professor Lou Honary and the University of Northern Iowa (UNI) Research Foundation to market biobased lubricants and grease technologies transferred from the University’s National Agriculture-Based Lubricants Center (UNI-NABL); also founded by Honary in 1991. In 2014, Honary retired from the University to manage ELM full time. A leading manufacturer of biobased greases in the US, ELM uses a unique patented microwaved-based grease process to manufacture biobased greases along with a wide array of liquid lubricants. Currently headquartered in an 87,000-sq. ft. facility in Grundy Center, Iowa, the company is privately owned and markets its products primarily via established petroleum lubricant manufacturers and distributors under private label and ELM brand: www.elmusa.com

About Chugoku Kogyo Co., LTD.:
Founded in 1940 in Hiroshima, Japan, the company prides itself with its strict quality control and has Japanese Industrial Standards (JIS) certification for engine oils, turbine and gear oils. The company is privately owned and services the racing industry, construction, agriculture and forestry, die-casting, metalworking, concrete mold, and transformer industry. Headquartered in Hiroshima, Chugoku Kogyo has additional sales offices in Tokyo, Osaka, Hiroshima and Fukuoka, Manufacturing plants are Hatsukaichi and Saiki in Hiroshima. Product brands include Seahorse, Daytona and Daytona Pro Spec for Racing. www.chugoku-kogyo.com/en/

New VANGUARD™ Synthetic Oil Provides Improved Small Engine Protection, Even in Extreme Environments

A new synthetic oil has taken the commercial small engine protection game to the next level. Briggs & Stratton Corporation introduces Vanguard™ Full Synthetic 15W-50 Engine Oil – a high performance engine oil that provides superior protection for the most demanding lawn and garden applications. From its ability to handle extreme heat and cold with ease to its extended oil life, Vanguard Oil may just become the next must-have for every garage and storage shed.

“Commercial-focused turf cutters push their small engines to the max, operating for hours on end,” says Carissa Gingras, director of marketing, global support. “These continuous, tough conditions demand maximum protection in order to optimize engine performance and minimize the profit-robbing impact of downtime.”

Vanguard Oil is a full synthetic engine oil, making it a high performance solution for engine protection. It also provides longer oil life compared to a semi-synthetic or mineral-based oil product. The zinc ingredient provides anti-wear protection from metal engine components and a high quality detergent ensures lower engine deposits as it wears.

Even in the most demanding environments, Vanguard Oil delivers. It is suitable for use in outdoor temperatures up to 130°F, providing maximum protection in hot summer months. Cold starting properties go as low as 20°F ensuring easy starting in late fall months.

Vanguard Oil is warranty-certified and suitable for use in air-cooled 4-cycle small engines. It is recommended for use in lawn and garden equipment and pressure washers, and is especially effective in continuous use commercial and/or industrial equipment such as zero-turn riders, lawn tractors, stand-on mowers and wide-area-walk mowers.

Source: Briggs & Stratton

2018: Off to an Interesting Start

The Year is Off to an Interesting Start

Additive and Now Base Oil Increases

As discussed in the December 27th issue of JobbersWorld, the big four lubricant additive manufacturers recently announced price increases in the range of 5 to 8%. The increases impact the cost of both VI and DI additives and when taken together, they bump the cost of goods to manufacturer motor oils up by roughly 8 to 10 cents per gallon (cpg). Likewise it increases the cost of most other lubricants at amounts dependent on the product types, treat rates and other variables. But there is more.

In addition to additive price increases, the new year also started off with announced increases in the price of base oil. Although additional increases are likely, those already announced in 2018 move the price of some of the workhorse base oils up by close to 10 cents a gallon.

With the price of both base oils and additives going up at roughly the same time and collectively adding at least another 20 cpg to the cost of good, you can be sure lubricant blenders and marketers are working their spreadsheets and evaluating various courses of action. And beyond taking into account the higher price of base oil and additives, you can be sure increases in packaging, transportation costs and others are also being reviewed.

So once again, hang on to your hats, 2018 looks like it’s off to an interesting start.

New CITGO CEO Arrives in Houston

CITGO President and CEO Asdrúbal Chávez conducted his first corporate meeting yesterday with top senior executives and management to review the Company’s 2017 results, including the record-setting safety performance and operational achievements.

Building on this momentum into 2018, CITGO will continue to emphasize excellence in all aspects of its operations to enhance competitiveness within the oil industry and support the hundreds of locally owned and operated marketers and retailers across the United States. Mr. Chávez, a chemical engineer, arrives at the CITGO headquarters in Houston with more than 30 years of industry experience and plans to unveil his vision for the future of the Company over the coming months.

About CITGO
CITGO Petroleum Corporation, based in Houston, is a refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. The company is owned by CITGO Holding, Inc., an indirect wholly owned subsidiary of Petróleos de Venezuela, S.A., the national oil company of the Bolivarian Republic of Venezuela. For more information, visit www.CITGO.com.

Source: CITGO

BP and Castrol Announce Extension of Global Strategic Partnership With Volkswagen Group

BPCASTROLVWPICBP and Castrol announced the renewal of their successful 17 year global strategic partnership agreement with Volkswagen Group for the supply of fuels and lubricants globally.

The agreement covers Volkswagen PC, Audi, Seat Skoda and Volkswagen LCV. Within the partnership a new Castrol and Volkswagen jointly branded engine oil has been co-engineered with Volkswagen group and will be launched soon. As technology partners, the two companies will continue their close collaboration in joint research and development to improve fuel efficiency and generate innovative future mobility solutions.

Oliver Rose, VP BP Global Accounts said: “For 17 years we have had an extremely successful partnership with the Volkswagen Group. We will continue working together to ensure the millions of drivers of Volkswagen Group vehicles get the best performance and protection.”

Commenting on the agreement, Imelda Labbé, head of Volkswagen Group After Sales worldwide said: “Volkswagen has had a long and successful partnership with Castrol. This powerful combination of our brands will reinforce the natural fit of our high quality standards and reputation. We are delighted to extend this partnership and look forward to working together.”

Source: Castrol

Sayle Oil Recognized as Master Certified Distributor

Sayle Oil was recently recognized by Shell Lubricants as a Master Certified Distributor. This designation signifies Sayle Oil’s loyalty to the Shell brand and the relationship the two companies share. Sayle says, “It is more than just a title. This new designation comes after years of growing in our target markets. Because we are the only Master Certified Shell distributor in our area, we can better serve our customers and continue to stay on top of the dynamics in the transportation industry.” Click for More

About Sayle Oil Company
For over 70 years, Sayle Oil Company has been the leading distributor of lubricants, fuels, and propane in the mid-South. The company offers a vast range of products in a multitude of applications including agriculture, industrial, transport, and consumer. Sayle Oil has the capabilities and resources to service your company – from product delivery to equipment inspection and oil analysis – as well as everything in between. This full spectrum of products and services makes us your ONE STOP SHOP for all things petroleum.

Lubricant Additive Prices on the Rise

Hang on to Your Hats – The New Year Starts off With Lubricant Additive Price Increases 

Afton Chemical was the first major additive company to recently move prices up when it announced on November 17th that it will increase the price on the majority of its performance additives by 5 to 7%. The increase went into effect December 15, 2017. Afton attributed the increase to the higher cost of raw materials and increases in transportation cost.

Others soon followed…

Lubrizol announced on December 19th it will implement a general price increase across all of its lubricant additive products effective February 1, 2018. The increase is reportedly driven by higher raw material and operating costs (including transportation, testing and labor). The amount of the increase are said to be product specific.

Infineum also announced on December 19th that it will implement a price increase.  The increase is effective January 10, 2018 and will move the price of most of Infineum’s additive products up by 5 to 8%. Infineum attributes the increase to the escalating cost of raw materials and the higher cost required to maintain consistent supply.

MidContinental Chemical Company (MCC) announced on December 20th that it will implement a price increase for Chevron Oronite, OLOA, and Paratone branded additives. This increase is effective on orders shipped on or after January 22, 2018. MCC attributes the increase to the recent increases in the cost of feed stocks, raw materials, intermediates, and higher transportation costs.


PIC11142017Rev2In addition to the higher cost of raw materials, another common thread among the additive price increases is the impact the higher cost of transportation is having on the industry. It’s important to consider that the cost to transport goods in the US increased significantly in 2017 and little relief is expected in the upcoming year.

In addition to driving up the cost of lubricant and fuel additives, higher freight costs have been a key factor in pushing up the price of finished lubricants in 2017. In fact, a number of lubricant blenders have reported that the cost to transport product has moved up 30 to 35% since the start of 2017.  See the November 15th issue of JobbersWorld for more about the factors driving up the price of finished lubricants. CLICK FOR MORE

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