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

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

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.

Shell Puts Marketers on PurePlus Allocation

Lubricant Marketers are Placed on Allocation for Shell Synthetic Lubricants with PurePlus Technology

pic22272017Shell announced late in December of 2016 that its Pearl gas-to-liquid (GTL) plant in Ras Laffan Industrial City, Qatar, was operating at a reduced rate of production (approximately 50% of plan), due to unforeseen maintenance required on the plant’s gasifier units. According to Shell at the time of the announcement, “Pearl has a volume of GTL products in storage and Shell will work closely with customers to minimize impacts to supplies.”

Marketers are just now learning that maintenance continues on the Pearl gasifier units and because of this, Shell is enacting an allocation for certain lubricants. Specifically effected are lubricants where SOPUS markets the product as containing PurePlus (GTL) base oil technology. This includes any synthetic where SOPUS markets the product as containing PurePlus base oil, Pennzoil Gold Synthetic Blend with dexos approval, Shell Rotella T5 HDEO (10W-30, 15W-40), and Shell’s flagship HDEO (Rotella T6 5W-40). Although the actual level of allocation has not been formally announced, some understand it will be in the area of 85% of total.

Whereas the duration of the allocation remains unknown, marketers are getting word that it could be months (3 to 4) before Pearl is running at full capacity.

JobbersWorld reached out to Shell for additional insights and they had no further commentary beyond what JobbersWorld has written.

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