Are 20wt oils more expensive to produce?

[Warlord]

At walmart their 5w-20 tech 2000 dino is more than $1/litre more expensive than the 30 weights. At over $3 a litre this stuff no longer is a deal IMO. I also see this with formula shell. Most of the companies don't charge more for 5w-20 so why would walmart and shell? Is it really that much more expnsive to produce? Are most companies making very little or losing money on 20wt oil?

 

[Gene K]

In most cases to meet SM/GF-4 and Ford WSS-M2C930A it requires better basestocks. 10w30 can be built with Group I, 5w30 can be built with primarily Group II, 5W-20 requires at least Group II+ and in many cases a Group II/Group III Synthetic Blend even when not marketed as such.

The companies that are most likely to have to increase prices are the lower volume, low advertising manufactures who operate on smaller margins. Given the hard bargaining techniques of WalMart I seriously doubt they can supply 5W-20 as cheaply to WalMart as they supply 5w30.

 

[Blue99]

To answer the question, the formulating costs are probably slightly higher for the fully additized 5W-20's, but the cost is measured in pennies.

Something else is generating the price differential of a $1 abottle in your area of Canada.

In general, the major brand 10w30's are not mixed from Grp I basestocks with the exception of Citgo. And I'll believe Valvoline when someone digs up a current MSDS - I keep seeing 2001, 2002 dates.

5W-20 & 5w30 can be mixed from the same base oil component, as both Chevron & Motiva offer a 4-5 cSt "5W" base oil. Of course the 5w30 has additional VI improver & some heavier 6 cSt base oil to meet the SAE 30 grade requirements .

 

[oilyriser]

Oil prices in Canada are not competitive, for some reason.

 

[Oil Changer]

Could it be as simple as Supply and Demand?

 

[oilyriser]

Mobil 1 in Canada Wal Marts is $38 for 5.3 quarts. That's about $35 us dollars. You can drive across the border and get it for 30% less.

 

[Kestas]

Many things are cheaper in the US. The lucky ones that live near the border drive across and have their cars serviced in the US. Technically, you're supposed to declare work done on your car when you go back, but how does the border patrol know (or care) that your car had its fluids and filters changed?

 

[rpn453]

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Many things are cheaper in the US. The lucky ones that live near the border drive across and have their cars serviced in the US.

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No, the lucky ones do it in their own garage!

The cheapest I've bought 5W-20 up here is $10.99 for 4.4L of Motomaster Formula1. So that's about CDN$2.49 per liter (US$2.06 per quart). Still fairly pricey compared to 5w30; I've always assumed that the 5W-20 oils are quite a bit more expensive to produce because of that. What is the normal price difference of 5W-20 to 5w30 in the U.S.?

Current prices were probably set when the Canadian dollar was sixty-some cents on the U.S. dollar. If our dollar stays strong, I'd expect to see prices eventually come down.

 

[Hermann]

Usually not any price difference between, lets say Havoline, Pennzoil, Quaker State, ect.

 

[oilyriser]

I remember when the c$ was 0.65, a jug of Mobil 1 was $28. Its gone up way more than the price of oil.

 

[Warlord]

Blue99, when you say that something else is generating the price difference do you think it could be from a different supplier? Its almost certain the safey kleen supplies canadian walmart with oil but maybe the 5w-20 is different. I wish it would come down to under 2 bucks like the rest of the tech 2000.

 

[Patman]

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Blue99, when you say that something else is generating the price difference do you think it could be from a different supplier? Its almost certain the safey kleen supplies canadian walmart with oil but maybe the 5w-20 is different. I wish it would come down to under 2 bucks like the rest of the tech 2000.

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It will probably never come down in price. I remember when 5w20 first hit the shelves of Walmart, they only sold Pennzoil at first. The price of the 5w30 and 10w30 was about $2 a quart, and the 5w20 was $3.78 per quart. If you check the price now, the 5w20 is still the same price, but now the 5w30 and 10w30 price has been raised to that same point!

 

[Ray H]

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...In general, the major brand 10w30's are not mixed from Grp I basestocks with the exception of Citgo.

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I suspect the Warren-Unilube family of "fine" (

) 10w30s could be added to your short list...