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.

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News on the Wire

ARG breaks ground on new, $3 million Quality Lab

American Refining Group Inc. (ARG) leadership and key community contributors and stakeholders gathered Sept. 9 to break ground on the historic refinery’s new, $3 million Quality Lab. 

“During the past year we’ve been spending a lot of money on what we are committed to, the things that are very important to us,” said ARG Chief Executive Officer Tim Brown. “This is just another extension of that because quality is one of our pillars. Quality Lab personnel are essential to all aspects of ARG. They’re supporting not just operations, but our customers, our suppliers, our sales team, our logistics, the environmental side; they are absolutely key to what we do and how we do our jobs.”

dscn3123ARG has two Quality Labs (a main lab and a minilab in the refinery’s Blending Plant) with a staff of 17 employees who, between them, support refinery operations around the clock; these in-house chemists and technicians process 5,500 to 6,500 samples per month (totaling approximately 30,000 tests) in addition to managing equipment, performing verifications, calibrations and troubleshooting or repairing instruments. All lab instruments are verified and/or calibrated to National Institute of Standards and Technology (NIST) traceable standards; the majority of these services are done on-site by a Quality Lab chemist. A powerful Laboratory Information Management System (LIMS) application is used to schedule, manage and report results for all samples processed in ARG’s labs.

The minilab at ARG’s Blending Plant services its lubricants blending and packaging operations. Basic testing conducted there includes viscosity, x-ray analysis for additive metals, pour points, moisture analysis and cold-cranking simulation testing. More-specialized testing includes particle counts, demulsibility tests, foaming characteristics and dielectric testing, while technicians there also monitor labeling and date coding of packaged products.

The main Quality Lab provides all other services, including approximately 70 different oil, wax and fuels tests; water, wastewater and process cooling tower water testing as well as tests to support the facility’s desulfurization process. Additional lab activities include in-process inspection of charge material, products and byproducts from each process unit at the refinery, certification of finished-product tanks, blend recommendations of gasoline and specialty products, incoming inspection of raw materials used in branded lubricant blending, branded lubricant blend analysis, packaged lubricant product analysis, final inspection of all bulk shipments, providing certificates of analysis to customers for both bulk and packaged products, long-term sample storage, and complete product recycling.

The new building, at 6,400 square feet, will replace the main Quality Lab currently in use. ARG worked with laboratory design firm LCS Constructors Inc. of Irvine, Calif., for planning. The general contractor is Poole Anderson Construction of State College.

Shifting the lab’s operations will be done in phases as instrumentation will have to be carefully disassembled, moved and reassembled before being calibrated for use. The facility will include a general test lab, a gas chromatography and distillation lab, a water/environmental lab and a thermal-test lab. The building will also comprise offices, storage, utility rooms, restrooms, and a lunchroom that will also be used as a training area.

Brown said of the project, “It’s a group commitment, not only to our past or our heritage and celebrating that, but also to what we’re looking forward to in the future.”

About ARG: American Refining Group, Inc.’s unique, privately owned facility is situated on approximately 131 acres in Bradford, Pa., the heart of McKean County and the birthplace of the U.S. 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. This type of crude is available domestically, and ARG purchases the majority of its crude from sources in Pennsylvania, Ohio, New York and West Virginia. It is also the oldest continuously operated lube oil refinery in North America. We strive to supply our customers with consistent, quality products and flexibility in working together to succeed with service that is second to none. For more information, visit www.amref.com

 

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