PetroChoice Acquires Prolube, More Price Increases

More Price Increases in Round 2

Phillips 66 announced a price increase of up to 10% on its finished lubricants effective May 14, 2018. Phillips 66 attributes the increase to the rising costs of the production and delivery of its products.

Safety-Kleen announced a price increase of up to 10% on its lubricants effective May 7, 2018. Safety-Kleen attributes the increase to the rising costs of raw materials, additives and base oil used in the manufacturing process of its products.


Note: In the April 5th issue of JobbersWorld, we wrote that Shell is the third major oil company to announce a lubricant price increase. Understanding that TOTAL S.A. is the world’s 4th-ranked international oil and gas company and one of seven supermajors, and that TOTAL Specialties USA is a wholly-owned Affiliate of TOTAL S.A. and its lubricants business in the US, TOTAL was actually the third major to move when they announced a lubricant price increase on March 29th. Shell was the fourth with its announcement on April 4th, 2018.

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

PetroChoice Acquires Prolube, Inc. out of Bensalem, PA

PetroChoice announced the acquisition of the lubricant business assets of Prolube, Inc in Bensalem, PA.

PetroChoiceProlube, Inc has been a reputable distributor of lubricants in the Northern Philadelphia market, specializing in the automotive market. Gregg Babcock, President, and Bob Powers, Secretary and head of sales at Prolube, Inc. have grown the company’s loyal customer base over the past 20 years and will serve as the primary consultants to PetroChoice during the transition.

“Prolube’s commitment to distribution excellence is a terrific addition to our overall growth plan,” said Rob Walker, Senior Vice President of Sales and Marketing at PetroChoice. “We are excited to welcome the Prolube staff into the PetroChoice family.”

Gregg Babcock commented, “It was not an easy decision to sell our company, but after getting to know the cohesive team at PetroChoice, we feel they are the best fit to take our company to the next level. Our customers will continue to be serviced by the best in the industry.”

Effective immediately, Prolube’s product distribution will be operating out of the PetroChoice Aston, PA facility.

About PetroChoice
PetroChoice is one of the largest petroleum-based lubricant distributors in the United States, providing business solutions for industrial, commercial and passenger automobile customers. The company, headquartered in Fort Washington, Pennsylvania, operates locations across the U.S. and employs some of the nation’s most knowledgeable technical experts in lubrication services and equipment. For more information visit PetroChoice.com.

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%
Shell 4/4/2018 5/7/2018 up to 10%
Phillips 66 4/5/2018 5/14/2018 up to 10%
Safety-Kleen 4/5/2018 5/7/2018 up to 10%

Increase462018R2
 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

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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.

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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.

Phillips 66 Lubricants Extends Agreement as Exclusive Lubricants Supplier for American Honda Motor Company, Inc.

Leading Finished Lubricants Manufacturer to Continue Supplying Service-Fill Lubricants for Honda and Acura Brands through 2019

Phillips 66Phillips 66 Lubricants, one of the largest finished lubricants suppliers in North America, today announced that the company has signed an agreement to continue manufacturing and supplying service-fill lubricants for the American Honda Motor Company, Inc. (AHM) through 2019. As a result of the agreement, Phillips 66 Lubricants will remain the exclusive provider for most Honda and Acura branded engine oil, lubricants and other vital fluids to dealers throughout the U.S.

“Our association with the team at AHM has been highly effective over the past years, thanks in large part to our shared commitment to developing high-performance, branded oil that complements the quality service that their dealerships provide,” said Bryan Faria, Manager, Finished Lubricants. “We value the relationship and are pleased to continue supporting AHM in the next four years with our high-quality lubricants and best-in-class services.”

The relationship between Phillips 66 Lubricants and AHM began in late 2010, when the company started supplying its lubricants products to Honda and Acura dealerships located in the U.S.

For more information about Phillips 66 Lubricants products, please visit  www.Phillips66Lubricants.com.

About Phillips 66 Lubricants
Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. As one of the largest finished lubricants suppliers in the U.S., Phillips 66 Lubricants is known for manufacturing and marketing high-quality base oils and sophisticated formulations in four major lubricant brands: Phillips 66®, Conoco®, 76® Lubricants, and Kendall® Motor Oil. These premier brands reach across every key market sector, including automotive, trucking, agriculture, aviation, power generation, mining and construction. For more information, visit www.Phillips66Lubricants.com.

Phillips 66 Lubricants Announces Consolidation of its Brand Portfolio

Lubricants Supplier Commits to Concentrated Marketing Support for Phillips 66® and Kendall® Motor Oil 

Phillips 66In an effort to strengthen relationships and drive strategic growth, Phillips 66 Lubricants, one of the largest finished lubricants suppliers in North America, today announced it will consolidate its Lubricants portfolio into two brands, Phillips 66® and Kendall® Motor Oil, beginning July 1, 2016. According to the company, transitioning away from a tri-branded strategy will help to elevate the profile of Phillips 66 Lubricants as a national lubricants supplier and better position it for the future. As a result of the consolidation, Phillips 66 Lubricants will optimize its product portfolio mix and develop a full line of lubricants products for every need under the Phillips 66 brand.

“We believe this new direction will help to build long-term equity for our brands and enable us to compete more aggressively in the marketplace,” said Bryan Faria, Manager, Finished Lubricants. “Consolidation simplifies the brand portfolio, while also allowing us to increase marketing support for two distinct brands. We’re committed to building strong brand awareness and focusing our efforts to have greater impact and be more efficient overall.”

Jamie Allison, Director, Lubricants Brand Management at Phillips 66 Lubricants told JobbersWorld “We are always listening to our Marketers and have been receiving ongoing feedback regarding our brand strategy. We’ve been discussing a potential consolidation for many months in order to address their concerns. Our multi-brand approach has caused confusion among customers and diluted Phillips 66 Lubricants’ perception as a national lubricants brand. In the end, a more focused investment will help to elevate Phillips 66 Lubricants’ profile and more effectively strengthen relationships to drive strategic growth.” Adding to this, Allison said “New advertising for both brands will launch in July.”

The consolidation affects only Phillips 66 Lubricants business; Phillips 66, Conoco® and 76® fuels brands will remain intact.

For more information about Phillips 66 Lubricants, please visit www.Phillips66Lubricants.com.

About Phillips 66 Lubricants
Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. As one of the largest finished lubricants suppliers in the U.S., Phillips 66 Lubricants is known for manufacturing and marketing high-quality base oils and sophisticated formulations in four lubricant brands: Phillips 66®, Conoco®, 76® Lubricants, and Kendall® Motor Oil. These premier products reach across every key market sector, including automotive, trucking, agriculture, aviation, power generation, mining and construction. For more information, visit www.phillips66lubricants.com.

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