Anyone know which are the more expensive components in an engine oil? Eg. base oil, viscosity modifier, friction modifier, detergent, dispersant, anti-oxidant, anti-wear system etc.
Engine oil component cost breakdown
- Thread starter vinu_neuro
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By volume, it's probably the additive package.
I'd think so too. Which parts of the additive package are more expensive?
The trend today is for the blender to purchase a complete additive package from some one like Lubrizol, Orinite or others to blend for the finished lube. I am not speaking of boutique oil like Red Line etc.This is one of the reasons why Sopus. XOM. and BP Can meet the very low prices for the walmarts of the world. Most of the work is completed by the adpak vendor for today's majors. FWIW--Oldtommy
The advertising and plastic bottle.
Originally Posted By: Doog
The advertising and plastic bottle.
I'm changing my mind. I like this now, but could change again to shipping costs.
The advertising and plastic bottle.
I'm changing my mind. I like this now, but could change again to shipping costs.
MolaKule
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Originally Posted By: vinu_neuro
Anyone know which are the more expensive components in an engine oil? Eg. base oil, viscosity modifier, friction modifier, detergent, dispersant, anti-oxidant, anti-wear system etc.
Consider the PCMO is 85% base oil and the rest or 15% is the additive package and you can do the math.
The Performance Package or PI is the friction modifier, detergent, dispersant, anti-oxidant, metal deactivator, and anti-wear system.
The viscosity modifier is usually added to tweak the viscosity, depending on the base oil mix and additive package.
Quote:
The trend today is for the blender to purchase a complete additive package from some one like Lubrizol, Orinite or others to blend for the finished lube.
If it were only that simple.
Anyone know which are the more expensive components in an engine oil? Eg. base oil, viscosity modifier, friction modifier, detergent, dispersant, anti-oxidant, anti-wear system etc.
Consider the PCMO is 85% base oil and the rest or 15% is the additive package and you can do the math.
The Performance Package or PI is the friction modifier, detergent, dispersant, anti-oxidant, metal deactivator, and anti-wear system.
The viscosity modifier is usually added to tweak the viscosity, depending on the base oil mix and additive package.
Quote:
The trend today is for the blender to purchase a complete additive package from some one like Lubrizol, Orinite or others to blend for the finished lube.
If it were only that simple.
Last edited:
Originally Posted By: MolaKule
Consider the PCMO is 85% base oil and the rest or 15% is the additive package and you can do the math.
We can't do the math yet, Mola, because we don't have all the values.
The base oil could cost $1 a litre, hypothetically, so $0.85 cents for one bottle of oil where 85% is base oil. That additive package could be ridiculously expensive, or cost next to nothing. After all, when crude oil changes in price, gasoline changes in price sometime down the road, too. We don't see the same volatility in Pennzoil Conventional prices as we do in gasoline prices, of course. So, that's why we are flummoxed as to the breakdown in costs of motor oil components.
For all we know, those of us who don't actually work in the field, packaging and logistics could be the most expensive component.
Consider the PCMO is 85% base oil and the rest or 15% is the additive package and you can do the math.
We can't do the math yet, Mola, because we don't have all the values.
The base oil could cost $1 a litre, hypothetically, so $0.85 cents for one bottle of oil where 85% is base oil. That additive package could be ridiculously expensive, or cost next to nothing. After all, when crude oil changes in price, gasoline changes in price sometime down the road, too. We don't see the same volatility in Pennzoil Conventional prices as we do in gasoline prices, of course. So, that's why we are flummoxed as to the breakdown in costs of motor oil components.
For all we know, those of us who don't actually work in the field, packaging and logistics could be the most expensive component.
MolaKule
Staff member
Quote:
packaging and logistics could be the most expensive component.
But that wasn't the question the OP asked.
He asked,
Quote:
Anyone know which are the more expensive components in an engine oil?
The most expensive component by volume is the base oil.
The final price of a quart of motor oil will include R&D, base oil and additive components, packaging and logistics.
I would define logistics as distribution, marketing, and legal.
packaging and logistics could be the most expensive component.
But that wasn't the question the OP asked.
He asked,
Quote:
Anyone know which are the more expensive components in an engine oil?
The most expensive component by volume is the base oil.
The final price of a quart of motor oil will include R&D, base oil and additive components, packaging and logistics.
I would define logistics as distribution, marketing, and legal.
Last edited:
Originally Posted By: MolaKule
The most expensive component by volume is the base oil.
There we go, thanks. How much variation does one tend to see in the relative weighting that the base oil provides to price? I'm just thinking of some boutique oils that might use rather expensive base stocks, particularly when they don't have the purchasing power that the big boys do, or, alternatively, if some oils might use a significantly more expensive additive package than others.
The most expensive component by volume is the base oil.
There we go, thanks. How much variation does one tend to see in the relative weighting that the base oil provides to price? I'm just thinking of some boutique oils that might use rather expensive base stocks, particularly when they don't have the purchasing power that the big boys do, or, alternatively, if some oils might use a significantly more expensive additive package than others.
Originally Posted By: MolaKule
The final price of a quart of motor oil will include R&D, base oil and additive components, packaging and logistics.
Gotta add in proffit to the cost equation.
The final price of a quart of motor oil will include R&D, base oil and additive components, packaging and logistics.
Gotta add in proffit to the cost equation.
MolaKule
Staff member
I was rolling profit into the logistics category.
From least costly base oils to more expensive it would be:
GroupII, GroupIII, GroupIV, and then GroupV. The most expensive GroupV right now is the Oil Soluble PAGs or OSPs.
For GroupIV base oils, the higher the viscosity the more cost per pound.
Much depends on the current price per pound and of course the larger the quantity of purchase the better the price point.
From least costly base oils to more expensive it would be:
GroupII, GroupIII, GroupIV, and then GroupV. The most expensive GroupV right now is the Oil Soluble PAGs or OSPs.
For GroupIV base oils, the higher the viscosity the more cost per pound.
Much depends on the current price per pound and of course the larger the quantity of purchase the better the price point.
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