Lubricant and Packaging Price Increases

More Price Increases in Round 2

Nu-Tier Brands announced a general increase of 6 to 8% on all its finished lubricants. The increase is effective April 16, 2018. Nu-Tier attributes the adjustment to the increasing costs of raw materials and manufacturing.

Total announced a price increase of 3 to 5% on its branded lubricants effective April 30, 2018. This increase is being driven by the continuing rise in base oils, additives and other materials used in the manufacturing of lubricants.

See the bottom of page for a complete table of all price increases reported by JobbersWorld in Round 2, 2018.

Packaging Cost on the Rise

DrumUpArrowMauser USA, manufacturers of industrial packaging solutions, announced a 7.5% price increase on steel drums and a 3.9% increase on the price of IBCs. Mauser attributes the increase to the escalating costs of steel with the enactment of Section 232. The increase is effective with shipments on April 25, 2018.

Based on JobbersWorld’s calculation, the increase adds close to $0.05 a gallon to the cost of lubricants sold in drums and kegs.

For those unfamiliar with Section 232, on March 8, 2018, President Trump exercised his authority under Section 232 of the Trade Expansion Act of 1962 to impose a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports, with exemptions for Canada and Mexico, in order to protect our national security. The President’s Section 232 decisions are the result of investigations led by the Commerce Department, after review and comment by other relevant Federal agencies. Customs and Border Protection will begin collecting the tariffs on March 23, 2018.

Chevron Announces New First Source Lubrication Marketer LubeSource

LubeSource customers now have access to a variety of marketing materials and tools

Chevron Products Company, a division of Chevron U.S.A. Inc., maker of technologically advanced engine oils, lubricants and coolants today announced LubeSource is the latest First Source Lubrication Marketer for Chevron Canada Limited.

ChevQuote432018As a Chevron-branded First Source marketer, LubeSource is recognized as one of Chevron’s top-performing Delo, Havoline and Chevron Industrial Lubrication Marketers. The First Source designation indicates LubeSource is committed to being strategically dedicated to the long-term success of their customers’ business.

“Chevron’s First Source Lubrication Marketer program has been a great resource for recognizing leading marketers and developing business relationships. The addition of LubeSource under Chevron Canada’s umbrella is a testament to its success rate,” said Bob Stolz, GM Chevron North America Lubricants. “LubeSource already had a reputation as a top lubrication marketer and joining our First Source program confirms it.”

As part of the customer support, the Vaughan, Ontario marketer now offers an expanded lubricant product portfolio. In addition, LubeSource customers will benefit from:

  • Local warehouses with short lead times for better product management and availability
  • In-Field Technical Lubricant Specialists willing to visit customer locations for reviews
  • Regular promotions and programs, advertising and marketing support
  • Immediate and exceptional technical support through LubeTek

“Chevron has 100 years of advanced engine protection, extended service protection and unsurpassed performance records, so we’re happy we’ve earned the First Source designation,” said LubeSource Director of Sales John O’Donnell. “As a Delo, Havoline and Chevron brand ambassador, LubeSource is now the source for delivering industry leading durability, reliability and efficiency. The latest partnership with Chevron makes LubeSource an even more complete one-stop solution for all of your heavy duty motor oil (HDMO), passenger car motor oil (PCMO) and industrial lubricant needs.”

LubeSource customers can now order Chevron, Delo and Havoline lubricants through LubeSource and are backed by written warranties, including the Delo Bumper-to-Bumper Warranty Program.

About Chevron Products Company
Chevron Products Company is a division of an indirect, wholly owned subsidiary of Chevron Corporation headquartered in San Ramon, CA. A full line of lubrication and coolant products are marketed through this organization. Select brands include Havoline® and Delo® Chevron Intellectual Property LLC owns patented technology in advanced lubricants products, new generation base oil technology and coolants. For more information go to: http://canada.chevronlubricants.com

About LubeSource
LubeSource is a premier distributor and single-source solution for oil, lubrication and related fluids across the automotive, commercial, industrial and agricultural markets. Serving the Ontario market for over 20 years, LubeSource is the premier supplier of all package and bulk heavy-duty motor oils, featuring cutting-edge facilities, industrial experts and technical teams dedicated to maximizing customer operations. For more information go to: or http://lubesource.ca/

Sunoco LP Announces Definitive Agreement to Acquire the Wholesale Fuel Distribution and Terminal Business from Superior Plus Corporation

Sunoco LP LogoSunoco LP (“Sunoco”) announced today the execution of a definitive agreement to purchase certain assets from Superior Plus Corporation for approximately $40 million plus working capital adjustments. The assets consist of a network of approximately 100 dealers, several hundred commercial contracts and three terminals, which are connected to major pipelines serving the Upstate New York market. The wholesale fuels business sells approximately 200 million gallons of fuel annually through multiple channels. The three terminals have a combined 17 tanks with 429 thousand barrels of storage capacity.

The acquisition is consistent with Sunoco’s strategy of utilizing its scale to grow the core fuel distribution business and adding fee-based refined product terminals into the overall portfolio. The acquisition is subject to customary closing conditions and is expected to close in April 2018. The transaction is expected to be immediately accretive to Sunoco with respect to distributable cash flow.

About Sunoco LP
Sunoco LP is a master limited partnership that distributes motor fuel to approximately 9,200 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN’s general partner is owned by Energy Transfer Equity, L.P.

VP Racing Fuels Named Official Fuel of Race of Champions

VP Racing Fuels, Inc., announced they have reached a multi-year agreement with Race of Champions management to secure Spec Fuel supply and series entitlements as Race of Champions Official Fuel, Lubricants, and Additives.

The Race of Champions is a sanctioning body presenting Modified and Stock Car racing on asphalt and dirt surfaces throughout the Northeast, with events in New York, Pennsylvania and New Jersey. The 68th annual Race of Champions weekend will take place in 2018 at Lake Erie Speedway in North East, Pa on September 27, 28 and 29. It is the second-longest consecutive auto-racing event in North America, second only to the Indianapolis 500. CLICK FOR MORE

Round 2 Lubricant Price Increase Summary

Company Announced Date Effective Date Increase
Sinclair Lubricants 2/12/2018 3/1/2018 up to 5%
CAM2 3/1/2018 3/24/2018 4 to 10%
Smitty’s Supply 3/1/2018 3/24/2018 4 to 10%
Pinnacle Oil 3/2/2018 3/19/2018 5 to 10%
Allegheny Petroleum 3/5/2018 3/24/2018 4 to 8%
Advanced Lubrication Specialities (ALS) 3/29/2018 6 to 9%
Sunoco 3/29/2018 6 to 9%
Chemlube 3/7/2018 3/26/2018 5 to 8%
Reliance Fluid Technologies (RFT) 3/7/2018 4/9/2018 4 to 9%
Sunbelt Lubricants 3/8/2018 3/21/2018 6 to 8%
PennStar 3/9/2018 3/19/2018 6 to 10%
Martin Lubricants 3/12/2018 4/16/2018 4 to 10%
Warren Distribution 3/12/2018 4/9/2018 5 to 8%
Maverick Performance Products 3/7/2018 3/26/2018 5 to 8%
Royal Mfg 3/13/2018 4/2/2018 3 to 8%
Omni Specialty Packaging 4/23/2018 5 to 8%
ExxonMobil 3/22/2018 4/23/2018 up to 10%
Chevron 3/28/2018 5/7/2018 up to 10%
Nu-Tier 3/28/2018 4/16/2018 6 to 8%
Total 3/29/2018 4/30/2018 3 to 5%

Timeline3282018R2
 CLICK FOR COMPLETE LIST OF LUBRICANT PRICE INCREASES IN 2018 ROUND 1 

Click on the Timeline Below to See All Effective Increase Dates in 2018

Timeline3302018Long

JobbersWorld Announces Lubricant Pricing Reports

JWMiniBooks-3A must have report for manufacturers, marketers, buyers and others looking to understand price drivers and communicate the reasons for price increases to customers.

THE REPORTS provide insights and information on finished lubricant prices and an in-depth analysis of the cost drivers responsible for the changes in lubricant costs and prices in the US market.

The Finished Lubricant Pricing Reports provide lubricant manufacturers and marketers with an independent source of information and insights on price changes at the manufacturer and retail levels and the key drivers behind the changes. In addition to the influence of crude and base oil, the reports analyze the impact of changes in the cost of lubricant additives, transportation, packaging, labor, and others.

clickmorejw

More Price Increases in Round 3

uppricesWarren Distribution announced today that it will increase the price of all its finished lubricants by 6 to 9%. The increase will be effective as of November 27, 2017. Warren Distribution attributes the price adjustment to the increased costs of base oils, additives, operation, raw materials and transportation.

Old World announced on October 30, 2017 that it will increase the price on all finished lubricants by up to 8%. The increase will be effective as of  November 13, 2017. Old World attributes the increase to the higher price of raw materials used in the manufacturing and distribution of its products.

Nu-Tier Brands announced on October 27, 2017 a general price increase of up to 6% on all finished lubricants. The increase goes into effect November 17, 2017. Nu-Tier attributes the increase to the rising costs associated with raw materials and manufacturing.

Chevron announced on October 24, 2017 an  increase on all lubricating oils and greases of up to 6%. The increase goes into effect as of December 4, 2017. Marketers were advised that certain products may be be outside the range.

Pinnacle Oil announced an increase of 5 to 7% on packaged and bulk lubricants effective as of November 15, 2017.

Lubricant Manufacturers Round 3

Company Announced
Date
Effective
Date
Increase
Kleen Performance Products 9/6/2017 9/6/2017 60 to 80 cpg
ExxonMobil 10/20/2017 11/20/2017 up to 6%
Chevron 10/24/2017 12/4/2017 up to 6%
Warren Oil 10/25/2017 11/17/2017 4% to 9%
Chemlube 10/26/2017 11/20/2017 20 to 25 cpg
Advanced Lubrication Specialties (ALS) 10/26/2017 11/13/2017 6 to 10%
CAM2 10/26/2017 11/15/2017 4 to 9%
Smitty’s Supply 10/26/2017 11/15/2017 20 cpg Bulk
25cpg Packaged Lubricants
3cpp Packaged Greases
Nu-Tier Brands 10/27/2017 11/17/2017 up to 6%
Old World Industries 10/30/2017 11/13/2017 up to 8%
Warren Distribution 10/31/2017 11/27/2017 6 to 9%
Pinnacle Oil 11/15/2017 5 to 7%
Lubricant
Price
Increase

CLICK TO ENLARGE

Increase10312017

PQIA Publishes HDEO Timeline

On October 27, 2017 the Petroleum Quality Institute of America (PQIA) published a timeline to help educate consumers about the American Petroleum Institute (API) Service Categories for diesel engine oils.

Nu-Tier Brands Names Vince Huschle as VP of Sales

Nu-Tier Brands, Inc. announced that Vince Huschle has been named Vice President of Sales. Nu-Tier Brands is responsible for the manufacturing and marketing of Gulf and ECOSE™ branded lubricants and specialty performance products.

vincepicVince has enjoyed over 32 years’ experience in several highly responsible Sales and Marketing assignments, with approximately 19 years in Supervisory/Management roles. For the past 13 years, Vince was working for a major lubricants distributor as the Director of Sales & Marketing, which included responsibility of managing 5 Sales Managers and 46 Territory Sales Managers. Vince’s career also included time working for a small refinery in Pennsylvania, which manufactured and marketed the Gulf brand.

This 32 year tenure in the lubricants industry has given Vince a very well rounded understanding of what it takes to develop mutual and long lasting partnerships. He is looking forward to developing and growing our Nu-Tier Brands distributors business.

About Nu-Tier:
Headquartered in Tulsa, Oklahoma, Nu-Tier Brands, Inc. under an exclusive trademark agreement with Gulf Oil Limited Partnership manufactures, markets, distributes, and sells the full line of Gulf Automotive, Commercial and Industrial Lubricants as well as the Gulf Select line of Specialty Chemicals and Equipment. In addition, Nu-Tier recently introduced its newest brand: ECOSE®. ECOSE® is a full line of automotive, commercial and industrial lubricants that meet or exceed industry standards and Original Equipment Manufacturer (OEM) approvals. Many of the ECOSE® products also provide a level of environmental benefit.  Click for more.  

%d bloggers like this: