Since when has oil gotten so expensive?

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I remember paying less than $24 for a 5 qt bottle at wal-mart of Valvoline Synpower/Mobil 1 type oils. Now they are just under $30 dollars.

At Oreilley's a 5.1 qt of Synpower is $39.99 now. I had to do a double take and ask the counter dude if that was the price for the oil and filter and he was like, nope that's just for the bottle of oil.

[censored]?! Even Valvoline Conventional was 13 and now it's around 16.50
 
About 18 months ago, a jug of Synpower was $18-19 at Walmart, so I consider $24.99 to be expensive even

It's gonna be expensive for a while. The price of motor oil at retail tracks the price of crude oil but with many months of lag time, so even if crude dropped by $20/bbl tomorrow, it'd take months for you to see the drop at retail
 
So I guess I will ask a sciency question. Does anyone know if all the companies run different additive packages in the winter? The other theory I would assume driving up costs is the SN certification. Are companies using additives that are more scarce?
 
I'm buying G-Oil which is only $26 for 5 quarts of synthetic :p. Seriously though, even though I do not have Dino oil (conventional or synthetic) in any of my crankcases, it's a sliver of the amount of oil I use through gasoline and other areas.

On the plus side I went from driving more than 500 miles a week to around 50-75 miles a week now that I am at my University and use the bus, bike, walk. I definitely do not miss sitting in rush hour everyday commuting between community college and back.

I still have many other areas in my life that I am trying to cut back on my petroleum use.

I think the price has more to do with other factors besides the price of a barrel of crude oil.
 
the price of everything has been going up, not just oil. wages go down while prices steadily climb. awesome times we're livin in!
 
There is a really good article in Lubes 'n' Greases magazine written by Tom that kind of explains the reasoning behind some of the price increases.

In summary additives have gotten more expensive because they are better, and I believe that, but the oil Co's are making a statement, tom kind of compared it to the water bottling comanies who charge exorbitant prices for something that comes out of your tap. People pay for it, and oil is becoming the same way. The oil co's are not just using the market to guide their prices, they are making a move. I personally don't see prices going down, so stock up if you find good deals.
 
their prices are really up there but thats ok because now i dont shop there and i save a few hundred dollars a month because when i used to get my oil there my wife spent a few hundred dollars on other things now that their oil is so high we dont go there at all except on the off chance we run out of oil in the drums at my shop
 
Take a look at the price of all Oil Products......Gear Oil has also shot up for synthetic. IMO....I don't think the price will come down since the add packs are most likely more expensive.
 
Originally Posted By: chubbs1
In summary additives have gotten more expensive because they are better, and I believe that, but the oil Co's are making a statement, tom kind of compared it to the water bottling comanies who charge exorbitant prices for something that comes out of your tap. People pay for it, and oil is becoming the same way. The oil co's are not just using the market to guide their prices, they are making a move. I personally don't see prices going down, so stock up if you find good deals.


I agree. The oil companies also realize people will pay $8-$10 a qt or more for some "boutique oils", so why not join in with higher prices across the industry? Your reference to bottled water hit the mark! I think there's some price gouging going on too.
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JMO
 
Originally Posted By: chubbs1
There is a really good article in Lubes 'n' Greases magazine written by Tom that kind of explains the reasoning behind some of the price increases.

In summary additives have gotten more expensive because they are better, and I believe that, but the oil Co's are making a statement, tom kind of compared it to the water bottling comanies who charge exorbitant prices for something that comes out of your tap. People pay for it, and oil is becoming the same way. The oil co's are not just using the market to guide their prices, they are making a move. I personally don't see prices going down, so stock up if you find good deals.


+1 This article is a very good read.

Just to give a small amount of insight - materials cost in oil manufacturing have almost doubled in the past 18 months (for some key ingredients) depending on how you look at it, oil companies are finding what the market will bear while still maintaining profitable margins. Most retailers are lucky if they make 10% margin on finished oils (which is very bad for business in the retail world) so I am not surprised to see a shift in pricing.

Originally Posted By: SteveTheisen
So I guess I will ask a sciency question. Does anyone know if all the companies run different additive packages in the winter? The other theory I would assume driving up costs is the SN certification. Are companies using additives that are more scarce?


Fuel Additives change in the winter but generally oil doesn't. The reason is because you can't really control what bottle of oil of a certain grade is used in winter. There are differing packages between grades that some people like to gravitate toward in winter (ie 0w20 vs 10w40) mostly its the same basic ingredients just in different concentrations.

With SN oils because of the further reduction in %phosphorus (800ppm max) there are more experiments into other EP/AW/FM additives - insert Titanium, Moly, Boron, etc etc. (and yes some of these are more expensive - that's why zddp has been so popular for so long - not that it was necessarily the best, but good enough and very cost effective) There are some interesting developments in Nano technology too but I don't think it will become mainstream for probably about 10 years.
 
Another theory of mine is economies of scale. If the US as a whole is seeing the light, if you will, in regards to extended drain intervals, they aren't moving the same quantity of oil as a whole. They in turn are shifting greater production, refining, research costs on each unit of oil.
 
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