Kleen Performance Products Announce a Price Increase

Kleen Performance Products notified its marketers that it will increase the price of its blended lubricant products by $0.60 to $0.80 a gallon. The increase takes effect immediately. Marketers are told the increase is due to continuing shifts in raw material economics and changes in supply and demand.

BioBlend Adds New Senior Executive

BioBlend PicBioBlend Renewable Resources, LLC announced today the addition of Len Badal to their senior executive team. As the demand for environmentally friendly lubricants grows, BioBlend is adding to its senior management team to foster further growth for the organization.

Len Badal

Len Badal, BioBlend

Len is a graduate of the United States Military Academy at West Point, and holds an MBA with a concentration in Finance from Rice University in Houston. Throughout his career Len has held a number of high-level positions with both Chevron and ExxonMobil and delivers a diverse range of experience that will aid BioBlend’s future growth.

“Len brings exceptional business experience and technical knowledge to BioBlend,” noted Sam Burkett, President of BioBlend. “BioBlend has grown significantly over the past three years and Len’s relationships with distributors, OEMs and end use customers will enable BioBlend to further accelerate that growth.”

BioBlend’s mission to provide consumers with cutting edge renewable and biobased products was a real motivator for Len’s decision to join the organization.

“It is exciting to be at the forefront of the next generation of lubricant development by joining the BioBlend team,” said Len. “We want to showcase that our lubricants can perform as well as, if not better than, traditional lubricants while helping reduce an end user’s environmental impact.”

As businesses and government entities across the world look to lessen their environmental impact and protect employees, BioBlend lubricants continues to innovate with new products that help organizations achieve their performance and sustainability goals.

About BioBlend
BioBlend is a leading manufacturer and marketer of bio-based industrial lubricants. The company provides environmentally responsible products and solutions to a variety of customers and industries around the world. For more information visit www.bioblend.com.

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

table201

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

pincrease2r2017

table201

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

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