"ExxonMobil, Shell, Chevron and Phillips 66 will raise prices by up to 12%."

[wemay]

Finished Lube Prices Climbing - Lubes'N'Greases

Several major and independent lubricant marketers informed customers of finished lube price increases in the United States that will take effect from mid-January through early February. Factors cited included rising base oil prices and related costs, such as transportation.

www.lubesngreases.com

Several major and independent lubricant marketers informed customers of finished lube price increases in the United States that will take effect from mid-January through early February. Factors cited included rising base oil prices and related costs, such as transportation.

Among oil majors, ExxonMobil, Shell, Chevron and Phillips 66 will raise prices by up to 12%.

*Gap. I left out some of the article because it's rather long to post. Click on link for full story*

Contrary to what typically occurs at the end of the year, when base oil producers have to contend with rising inventories and downward price pressure, last November, suppliers raised posted and spot prices. These movements were fueled by healthy demand – both on the domestic and export fronts – against tight base oil availability given that most refineries were running at reduced rates on account of lackluster fuel demand and thin distillate margins.

Firm crude oil values offered further support to the higher base oil numbers. A majority of paraffinic producers and rerefiners raised API Group I, II, II+ and III posted prices by 20, 25, 26 and 30 cents per gallon, depending on the grade, with increases going into effect between Dec. 7 and Dec. 16. The Group II+ and III suppliers had previously also revised postings in late November.

Similarly, naphthenic base oil producers implemented price increases between Dec. 1 and Dec. 18, with values rising by 20, 25 and 30 cents/gal, depending on the viscosity and the producer.

Agashe noted that in addition to increased base oil prices, rising prices for lubricant additives, plastic resin, higher transportation costs and higher manufacturing costs also led to the increased lubricant prices. “For example, Afton Chemicals will increase the price of its lube additives by 8% or more effective Jan. 20,” she added.

She noted that one of the biggest questions surrounding transportation is how spot rates will affect next year’s contracts, as rates averaged 20% to 30% higher than 2019 over the past three months. In this context, she explained, spot rates refers to hiring a logistics company without a 12-month advance negotiated fee and agreeing to instead pay the spot price, which is like the “current ongoing” price as opposed to contracts negotiated in the prior year.

 

[wpod]

Prices are going up like crazy. I remember the early 1970s.

 

[Boomer]

With the government printing and distributing checks, there is a lot of money entering the system not backed by manufacturing, mining, etc. This is VERY inflationary. While people may need money right now, the long term effect will be that it is taken away from them by rising inflation. Inflation is always the cruelest form of taxation as it punishes the saver and degrades very quickly the incomes of people on pensions and low paying jobs where there are few if any increases. If you are young enough to not remember the Carter administration, then you won't remember interest rates that were as high as 18%. People today cannot imagine a mortgage at 12 or 13%. Be prepared!!

 

[4WD]

I knew there was a method behind my (stash) madness

 

[LazyDog]

Your friend substitution will be at work in most people minds. I do this all the time with my purchases!

 

[SeaJay]

Prices are going up like crazy. I remember the early 1970s.

Gasoline doubled in 1973 (roughly 30 to 60 cents/gallon) and then doubled again in 1978 (roughly 60 to 1.20 per gallon). Food prices started jumping even earlier. Those were scary times if you lived paycheck to paycheck.

 

[BISCUT]

With the government printing and distributing checks, there is a lot of money entering the system not backed by manufacturing, mining, etc. This is VERY inflationary. While people may need money right now, the long term effect will be that it is taken away from them by rising inflation. Inflation is always the cruelest form of taxation as it punishes the saver and degrades very quickly the incomes of people on pensions and low paying jobs where there are few if any increases. If you are young enough to not remember the Carter administration, then you won't remember interest rates that were as high as 18%. People today cannot imagine a mortgage at 12 or 13%. Be prepared!!

Boomer, The vast majority of people don't understand that the fed printing trillions is a de-facto tax on all Americans via inflation.

 

[wpod]

That is when Fiat money was started.

 

[simple_gifts]

Boomer, The vast majority of people don't understand that the fed printing trillions is a de-facto tax on all Americans via inflation.

That being said many supply chain and weather factors were cited in the article.

Probably those factors are substantially more impactful IMHO

 

[PimTac]

I should be seeing $4 gasoline here real shortly then.

 

[BlueOvalFitter]

I should be seeing $4 gasoline here real shortly then.

It won't be just from rising oil prices. Every time there's a changing of "THE GUARD" (AKA-Donkey) in the USA, gas prices ALWAYS go up!

 

[rob1715]

Because they can.

 

[FowVay]

This is all the doom and gloom hysteria that gets spread in our media. If you're a avid reader of Lubes 'n Greases magazine then you'll recognize that this same article pops up routinely at least once a years. Here are screen shots of the same article printed one year apart. Note the dats at the top of the page.

 

[bullwinkle]

It won't be just from rising oil prices. Every time there's a changing of "THE GUARD" (AKA-Donkey) in the USA, gas prices ALWAYS go up!

They'll just want everyone to go electric, everybody knows there's no damage from electricity!

 

[loneryder]

Gasoline doubled in 1973 (roughly 30 to 60 cents/gallon) and then doubled again in 1978 (roughly 60 to 1.20 per gallon). Food prices started jumping even earlier. Those were scary times if you lived paycheck to paycheck.

Remember it well.

 

[loneryder]

They'll just want everyone to go electric, everybody knows there's no damage from electricity!

It won't be just from rising oil prices. Every time there's a changing of "THE GUARD" (AKA-Donkey) in the USA, gas prices ALWAYS go up!

Energy independence may be over.

 

[SZR48207]

Sigh

 

[Averroes]

Well, with Biden at th helm, lets see how much more it increases rather than the 12% suggested here.

 

[Ursatdx]

Lubricants at the installer levels have seen major increases.
My bulk and case goods had an increase towards the end of last year.
Another on Feb 1st and another slated for 2/15.
Yippee.

 

[Ignatius]

Funny that I find this thread today, I was just in contact with my regional Castrol distributor on Monday and they shared this with me:

"Castrol has announced they have a price increase taking effect on February 15th, I don’t have the exact price increase they are passing but they expect to be around 12%."

EDIT: I do wonder if these price increases, in part due to lowered demand, will affect future promotions like rebates, etc.