SOPUS Products to go up 5%

[Solarent]

Link

Quote:
Shell notified U.S. customers this week that prices for its finished lubricants will generally increase by up to 5 percent effective Feb. 20. The company attributed the adjustment in part to increasing costs of raw materials used in the production and delivery of its products.


This time last year they decreased prices by 2% because of falling raw material costs. That means a net increase of 3% over 2015 prices (when crude was at double what it is now)... clever.

 

[GravelRoad]

That dang yellow bottle dye...

 

[demarpaint]

I expect others to follow.

 

[Pop_Rivit]

Originally Posted By: Solarent
This time last year they decreased prices by 2% because of falling raw material costs. That means a net increase of 3% over 2015 prices (when crude was at double what it is now)... clever.


You really don't understand that crude oil is not the only thing in engine oil?

 

[CT8]

Nooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo!

 

[69GTX]

This is going to cost me an extra 75c per oil change!......In 3 years when my current stash runs out.

Interesting that SOPUS is going to get you for an extra $1 per jug of oil....and at the same time give you up to a $10 rebate per jug throughout 2017.
Looks like a +$9 net for PP and +$6 net for QSUD.

 

[Solarent]

Originally Posted By: Pop_Rivit
You really don't understand that crude oil is not the only thing in engine oil?


Actually I do, probably better than most if you really want to get into it. Traditionally though, base oil prices - especially Group II which makes up the vast majority of engine oil products today, tracked fairly closely to crude pricing. That is changing, especially in North America where supply increases have been putting continual downward pressure on Group II and even some Group III prices.

Being as base oil is 70-75% of the material in the bottle, it would stand to reason that base oil prices significantly impact the manufacturing cost of engine oil (and it does, by a LOT). However other key ingredients - additive pricing for example does not really track well with crude as most of the intermediates the Addco's use are independent and have their own indices.

All that said, I was just commenting on the fact that costs probably haven't restored to 2015 levels yet (although they might in the coming year) and yet Shell is asking customers to pay more than the 2015 levels. That's good business for Shell and as long as we can still get great rebates, the consumers probably don't care.

 

[bioburner]

Even if the oil prices continue to fall? Down 2% this morning

 

[bullwinkle]

Good-that means pricier synthetic oils, which won't sell because they cost too much, to snap up when they go on clearance NEXT TIME (end of '17)!

 

[ericgl]

Base oils went up 10 or so cents/gallon last week. Shell is raising prices and looking to see if anyone follows suit. Much of what Shell and others sell is at a discount to their list price, it is easy for them to discount more if the list price increases.

 

[Triple_Se7en]

Originally Posted By: 69GTX
This is going to cost me an extra 75c per oil change!......In 3 years when my current stash runs out.

Interesting that SOPUS is going to get you for an extra $1 per jug of oil....and at the same time give you up to a $10 rebate per jug throughout 2017.
Looks like a +$9 net for PP and +$6 net for QSUD.


If you were paying $25 for that five quart jug of Ultra, it's going to cost you at least $1.50 more.

 

[SwampSurvivor]

Originally Posted By: bullwinkle
Good-that means pricier synthetic oils, which won't sell because they cost too much, to snap up when they go on clearance NEXT TIME (end of '17)!


My thoughts exactly!

And for oil changes where I don't have super cheap clarance oil, there's always Supertech!

 

[robertcope]

Let's see, 5% rise in prices for products I can't find in the first place means...

robert

 

[Vuflanovsky]

Yeah, a 5% price increase is pretty moot where Ultra is concerned if you don't buy it online or from a distributor.

I think the idea of the added expense possibly generating more "sales" and "rollbacks" is a valid one though. How many oil freaks are there in relation to Johnnie Six Packs where buying oil is concerned when you're near the magic $30 mark at WalMart??. My local K Mart went through a phase of deeply discounting all the top shelf oils ( cheaper than WalMart prices ) on a rotating basis and currently only discounts the bargain product. I can see that discounting repeating itself.

 

[4WD]

The PUP thing is odd. Pennzoil is wiping out shelf space everywhere I shop - but I had to buy PUP on Amazon.
Done with that ...

 

[Bighorn2500]

Good thing I got enough oil at the AZ $2 per quart clearance sale to last me till next December's sale...

 

[AirgunSavant]

Not everyone makes their own engine oil like you do Poop Rivit.


Originally Posted By: Pop_Rivit
Originally Posted By: Solarent
This time last year they decreased prices by 2% because of falling raw material costs. That means a net increase of 3% over 2015 prices (when crude was at double what it is now)... clever.


You really don't understand that crude oil is not the only thing in engine oil?

 

[THafeez]

47.31 for a 6 pack of Ultra from the distributor near me. Not happening. Pennzoil needs to advertise this product better

 

[53' Stude]

That's fine, I'll keep using Chevron Supreme from Amazon and "clearance oils" from "the stash".

I'm partial to Valvoline and M1 and Castrol anyways

 

[Garak]

I worry far more about our retailer markup here than I worry about the oil companies. I'll give Shell 10% extra if the Canadian retailers realize that a markup of over 100% on motor oil is unacceptable.