guess i'm placing my order today
AMSOIL is forced to implement an energy surcharge
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Originally Posted By: Cutehumor
the price of gas doesn't hit people until they fill up their gas tanks. when they spend 90 bucks for gas, they complain about the prices. it doesn't change their driving habits. it's always someone else's fault.
That's an incredible statement of the truth.
Then put them in a work vehicle owned and fueled by some-one else and see how they drive/look after the vehicle.
the price of gas doesn't hit people until they fill up their gas tanks. when they spend 90 bucks for gas, they complain about the prices. it doesn't change their driving habits. it's always someone else's fault.
That's an incredible statement of the truth.
Then put them in a work vehicle owned and fueled by some-one else and see how they drive/look after the vehicle.
Originally Posted By: Johnny
I've thought this for a long time so I might as well say it. You people (if the shoe fits wear it) go out and spend multiple thousands of dollars for a vehicle or vehicles and want to buy the cheapest thing you can and run it into the ground, then say the products no good. Pick the oil you like best (any brand) no matter what the cost and change it. It's the cheapest maintenance you can do to your vehicle to make it last.
Johnny great quote,
I've told all my customers, AMSOIL is still a great deal when you look at price to performance. I"m on my 5th oil change in 80,000 miles on my Nissan. Last oil change (26,000) I had to add no oil.
My mpg is a consistent 23-25mpg. Most people I talk to don't even know what their mpg is. I try to explain it and it's like I'm giving them the equation for the theory of relativity.
Price of oil keeps going up. Looks like bypass filtration and oil analysis will become more important in the future. Good thing AMSOIL has a great by-pass filtration system!!!
I've thought this for a long time so I might as well say it. You people (if the shoe fits wear it) go out and spend multiple thousands of dollars for a vehicle or vehicles and want to buy the cheapest thing you can and run it into the ground, then say the products no good. Pick the oil you like best (any brand) no matter what the cost and change it. It's the cheapest maintenance you can do to your vehicle to make it last.
Johnny great quote,
I've told all my customers, AMSOIL is still a great deal when you look at price to performance. I"m on my 5th oil change in 80,000 miles on my Nissan. Last oil change (26,000) I had to add no oil.
My mpg is a consistent 23-25mpg. Most people I talk to don't even know what their mpg is. I try to explain it and it's like I'm giving them the equation for the theory of relativity.
Price of oil keeps going up. Looks like bypass filtration and oil analysis will become more important in the future. Good thing AMSOIL has a great by-pass filtration system!!!
Last edited:
The problem with Amsoil use is all the UOAs posted with 5,6,7 miles on the oil which makes Amsoil a waste of money but I guess is good for those selling Amsoil products .
True enough for BITOG, but maybe 1:100 (probably less) of my customers are BITOG members, most of those non-members could care less to post UOA's and they pretty much all exceed 10K.
What percentage of your budget is motor oil? Is it as important as other trivial expenditures in you life.
The true advantage of Amsoil is the extended oil change intervals. No?
I would hope so. "Using Amsoil for its intended purpose".
I have seen insides of engines enough to know what oil I need to have my engine live a long ,long life .
How is all of this relevant to the energy surcharge?
Saving $$$ from the use of Amsoil products if done correctly.
Looks like prices are going up again:
http://www.amsoil.com/energy_surcharge.aspx
Energy Surcharge for July will remain at 5% in the United States and Puerto Rico. No surcharge to be implemented in Canada for July. New prices to be implemented on August 1, 2008.
Although cost increases dictate a need to significantly increase the surcharge percentage in the US and to implement one in Canada, AMSOIL plans to hold it where it is for another month. AMSOIL is aware that a price increase for each product is preferable to a surcharge, but it was not something the company could implement quickly enough or with an acceptable degree of accuracy in a short time frame. The energy surcharge was the best short term method possible to keep up with rapidly rising costs. Due to the ongoing price increases from suppliers and the potential for even more in the immediate future AMSOIL has been forced to expand the potential range of the August 1 price adjustment from 8 - 14% to 8 - 16%.
http://www.amsoil.com/energy_surcharge.aspx
Energy Surcharge for July will remain at 5% in the United States and Puerto Rico. No surcharge to be implemented in Canada for July. New prices to be implemented on August 1, 2008.
Although cost increases dictate a need to significantly increase the surcharge percentage in the US and to implement one in Canada, AMSOIL plans to hold it where it is for another month. AMSOIL is aware that a price increase for each product is preferable to a surcharge, but it was not something the company could implement quickly enough or with an acceptable degree of accuracy in a short time frame. The energy surcharge was the best short term method possible to keep up with rapidly rising costs. Due to the ongoing price increases from suppliers and the potential for even more in the immediate future AMSOIL has been forced to expand the potential range of the August 1 price adjustment from 8 - 14% to 8 - 16%.
FYI- Everyone. Because I use the OAI for a LOT of field testing I called to see if they were going to be part of the big price increase...Guess what?? They aren't going to hit us with any increase. This is real cool because with the energy surcharge deal falling off the books ordering oil analysis test kits will be 5% cheaper for us after 8/1/08....YEEHAW!
pickled....I think the 5% is going away and 16% is coming on...so order ANYTHING before Aug 1st! Yes...that's a net of 11% increase.
No man...I talked with the guy who runs the OAI division today on the phone (Mr. Kellerman) and the oil analysis test kits are staying the same price and you won't have to pay the 5% energy surcharge on your order anymore. As far as the lubricants you are absolutely right on...they are going up-way up! I'm supplementing my oil, gear lube and grease stash in a big way this week that's for sure. Take it easy.
Not everything is going up 16%.
The price you see for oil today is not for oil in production today, its futures!!! That oil won't be in the pipeline for months.
Quote:
When people think of the oil industry, the first thing
that usually comes to mind is the cost of fuel. When oil
and fuel cost more, everything costs more. It’s not just
at the pump; groceries cost more, deliveries cost more
and of course, motor oil costs more. While AMSOIL produces
only synthetic lubricants, the company is still
hit hard by high oil prices.
An example of how shock waves from current market
volatility will be felt lies in the auto industry. Up to now,
automakers have protected themselves from market
fluctuations by locking into long-term contracts with
steel producers. That’s why the large increases in steel
prices haven’t driven up the costs of new vehicles. But
those contracts are starting to run out. The same sort
of scenario is playing out with every other commodity.
Copper, zinc, aluminum, platinum, magnesium and
plastic are all skyrocketing in price. According to Ward’s
Automotive, in the near future a $20,000 vehicle will be
a $30,000 vehicle, a $30,000 vehicle will be a $40,000
vehicle and so on.
Raw Materials
Ingredients of synthetic lubes, additives and base
stocks, even synthetic base stocks, have some basis in
crude oil and natural gas. The unprecedented increase
in crude oil over the past year is driving the costs of key
chemicals up sharply and often. Butane, ethylene,
propylene, benzene and other chemicals used to produce
base oils have all skyrocketed in price. Over the
past 12 months, the price of base oils used in the pro-duction of AMSOIL synthetic lubricants has risen by 47
percent. Additives have been greatly affected as well.
Diesel oil additives are up 24 percent, two-stroke oil
additives are up 27 percent and gasoline engine oil
additives are up 25 percent, all in the past six months.
The price increases from AMSOIL chemical and raw
material suppliers are issued so frequently and with
such significant impact that it’s almost impossible to
maintain sufficient pricing levels. And more price
increases are in the pipeline.
Packaging
The price of plastic has risen dramatically due to the
increased price of crude oil, and AMSOIL is greatly
affected. Plastic packaging, including quarts, gallons,
pails and twin packs, has risen in price by over 14 percent
in the past 12 months, and plastic cap prices have
risen 21 percent in the past 12 months. In addition,
steel drums have risen in price by 39.5 percent in the
past six months alone.
Freight
Freight companies commonly use fuel surcharges to
cope with fluctuations in the price of fuel. Twelve months
ago, AMSOIL paid a fuel surcharge of $0.35 per mile.
Currently, the company pays $0.71 per mile, and has
paid as much as $0.81 per mile. Fuel surcharges are in
addition to regular freight rates, and current fuel surcharges
nearly double the cost of shipping. Additionally,
fuel surcharges apply to everything coming in and going
out, so AMSOIL pays a fuel surcharge and freight on packaging as it comes in and again when it is shipped
out as finished product.
Supply & Demand
While demand for finished lubricants continues to rise,
supply has remained tight. China, India, South Africa and
other densely-populated countries are using more oil all
the time. In addition, competition for many of the chemicals
used to produce lubricants continues to increase.
For example, the demand for biofuels has dramatically
increased the demand for the crops used in their production,
which has in turn increased the demand for fertilizer.
Many chemical fertilizers are formulated with raw
materials derived from the same chemicals used to produce
additives, further depleting supplies.
Lithium is another common ingredient necessary to
grease production that is being used up quickly by
other industries. Lithium is a silver-white, soft alkali
metal that, under normal conditions, is the lightest
metal and least dense solid element. Lithium hydroxide,
a lithium derivative, is primarily used in the grease
industry, with demand growing at a steady 2 percent per
year over the last 20 years. Lithium-based greases are
popular in automotive, industrial, military, aircraft and
marine applications. Lithium is also used in glass and cement applications, and has the ability to store electrical
energy. Lithium carbonate is an important component in
batteries for mobile phones, laptops, camcorders, cameras
and electric and hybrid cars. With the popularity of
portable electronic devices, and environmental concerns
increasing demand for electric and hybrid cars to
unprecedented levels, demand for lithium is increasing
and will continue to increase. For example, Toyota plans
to offer only hybrid vehicles by 2020.
Political instability around the globe, rampant speculation,
restricted access to new sources, lack of investment
in new production and a weak U.S. dollar are
major issues affecting the current state of volatility.
These issues are outside even the U.S. government’s
control and all have some impact on the lubricants
industry by affecting prices.
Additional Challenges
As an independent oil company, AMSOIL faces many
unique challenges. The volatility of the current market
impacts independent manufacturers differently than it
does “Big Oil.” Recently, the Independent Lubricant
Manufacturers Association (ILMA) submitted comments
to the Federal Trade Commission (FTC) renewing its criticism
of the pricing practices of major oil companies.
ILMA’s biggest complaint lies with the majors’ practice
of issuing a price increase for base oils to all of their
competitors and delaying the subsequent price increase
on their finished lubricants. Independent blenders, like
AMSOIL, buy base oils from the majors and compete
against them in the sale of finished goods.
In some cases, ILMA contends, the same suppliers
that implement numerous base oil price increases to
independents delay increasing prices on their finished
products for 45 to 60 days, causing a price squeeze on
independent lubricant manufacturers. For example,
Shell announced a price increase on finished lubes
May 23 that doesn’t go into effect until August 5.
ILMA General Counsel Jeff Leiter said the only conclusion
that can be reached is that the major oil companies
are trying to squeeze out the independents for market share. “ExxonMobil might say ‘Shell’s our competition,
not ILMA members,’ but it’s kind of curious that
ExxonMobil is selling base oil to Shell. Exxon raises
prices, and the rest of them follow suit the next day by
the same amount. Our sense is, we’ve lost a competitive
market for base oils, and that’s what is creating the
problem,” said Leiter. Price increases from base oil
suppliers used to be approximately $0.05 per gallon.
Now they are more like $0.30 per gallon each increase.
Quote:
When people think of the oil industry, the first thing
that usually comes to mind is the cost of fuel. When oil
and fuel cost more, everything costs more. It’s not just
at the pump; groceries cost more, deliveries cost more
and of course, motor oil costs more. While AMSOIL produces
only synthetic lubricants, the company is still
hit hard by high oil prices.
An example of how shock waves from current market
volatility will be felt lies in the auto industry. Up to now,
automakers have protected themselves from market
fluctuations by locking into long-term contracts with
steel producers. That’s why the large increases in steel
prices haven’t driven up the costs of new vehicles. But
those contracts are starting to run out. The same sort
of scenario is playing out with every other commodity.
Copper, zinc, aluminum, platinum, magnesium and
plastic are all skyrocketing in price. According to Ward’s
Automotive, in the near future a $20,000 vehicle will be
a $30,000 vehicle, a $30,000 vehicle will be a $40,000
vehicle and so on.
Raw Materials
Ingredients of synthetic lubes, additives and base
stocks, even synthetic base stocks, have some basis in
crude oil and natural gas. The unprecedented increase
in crude oil over the past year is driving the costs of key
chemicals up sharply and often. Butane, ethylene,
propylene, benzene and other chemicals used to produce
base oils have all skyrocketed in price. Over the
past 12 months, the price of base oils used in the pro-duction of AMSOIL synthetic lubricants has risen by 47
percent. Additives have been greatly affected as well.
Diesel oil additives are up 24 percent, two-stroke oil
additives are up 27 percent and gasoline engine oil
additives are up 25 percent, all in the past six months.
The price increases from AMSOIL chemical and raw
material suppliers are issued so frequently and with
such significant impact that it’s almost impossible to
maintain sufficient pricing levels. And more price
increases are in the pipeline.
Packaging
The price of plastic has risen dramatically due to the
increased price of crude oil, and AMSOIL is greatly
affected. Plastic packaging, including quarts, gallons,
pails and twin packs, has risen in price by over 14 percent
in the past 12 months, and plastic cap prices have
risen 21 percent in the past 12 months. In addition,
steel drums have risen in price by 39.5 percent in the
past six months alone.
Freight
Freight companies commonly use fuel surcharges to
cope with fluctuations in the price of fuel. Twelve months
ago, AMSOIL paid a fuel surcharge of $0.35 per mile.
Currently, the company pays $0.71 per mile, and has
paid as much as $0.81 per mile. Fuel surcharges are in
addition to regular freight rates, and current fuel surcharges
nearly double the cost of shipping. Additionally,
fuel surcharges apply to everything coming in and going
out, so AMSOIL pays a fuel surcharge and freight on packaging as it comes in and again when it is shipped
out as finished product.
Supply & Demand
While demand for finished lubricants continues to rise,
supply has remained tight. China, India, South Africa and
other densely-populated countries are using more oil all
the time. In addition, competition for many of the chemicals
used to produce lubricants continues to increase.
For example, the demand for biofuels has dramatically
increased the demand for the crops used in their production,
which has in turn increased the demand for fertilizer.
Many chemical fertilizers are formulated with raw
materials derived from the same chemicals used to produce
additives, further depleting supplies.
Lithium is another common ingredient necessary to
grease production that is being used up quickly by
other industries. Lithium is a silver-white, soft alkali
metal that, under normal conditions, is the lightest
metal and least dense solid element. Lithium hydroxide,
a lithium derivative, is primarily used in the grease
industry, with demand growing at a steady 2 percent per
year over the last 20 years. Lithium-based greases are
popular in automotive, industrial, military, aircraft and
marine applications. Lithium is also used in glass and cement applications, and has the ability to store electrical
energy. Lithium carbonate is an important component in
batteries for mobile phones, laptops, camcorders, cameras
and electric and hybrid cars. With the popularity of
portable electronic devices, and environmental concerns
increasing demand for electric and hybrid cars to
unprecedented levels, demand for lithium is increasing
and will continue to increase. For example, Toyota plans
to offer only hybrid vehicles by 2020.
Political instability around the globe, rampant speculation,
restricted access to new sources, lack of investment
in new production and a weak U.S. dollar are
major issues affecting the current state of volatility.
These issues are outside even the U.S. government’s
control and all have some impact on the lubricants
industry by affecting prices.
Additional Challenges
As an independent oil company, AMSOIL faces many
unique challenges. The volatility of the current market
impacts independent manufacturers differently than it
does “Big Oil.” Recently, the Independent Lubricant
Manufacturers Association (ILMA) submitted comments
to the Federal Trade Commission (FTC) renewing its criticism
of the pricing practices of major oil companies.
ILMA’s biggest complaint lies with the majors’ practice
of issuing a price increase for base oils to all of their
competitors and delaying the subsequent price increase
on their finished lubricants. Independent blenders, like
AMSOIL, buy base oils from the majors and compete
against them in the sale of finished goods.
In some cases, ILMA contends, the same suppliers
that implement numerous base oil price increases to
independents delay increasing prices on their finished
products for 45 to 60 days, causing a price squeeze on
independent lubricant manufacturers. For example,
Shell announced a price increase on finished lubes
May 23 that doesn’t go into effect until August 5.
ILMA General Counsel Jeff Leiter said the only conclusion
that can be reached is that the major oil companies
are trying to squeeze out the independents for market share. “ExxonMobil might say ‘Shell’s our competition,
not ILMA members,’ but it’s kind of curious that
ExxonMobil is selling base oil to Shell. Exxon raises
prices, and the rest of them follow suit the next day by
the same amount. Our sense is, we’ve lost a competitive
market for base oils, and that’s what is creating the
problem,” said Leiter. Price increases from base oil
suppliers used to be approximately $0.05 per gallon.
Now they are more like $0.30 per gallon each increase.
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