why other than to maximize profits? over the past few years gas prices at the pump have decreased, so why dont we commonly see regular motor oil under $2 and synthetic under $5 as it was several years ago? same with ongoing airline fuel surcharges? sorry if im asking a dumb or often-answered question...
why is motor oil so expensive altho brent is $50
- Thread starter jstert
- Start date
- Status
JHZR2
Staff member
Because it takes energy to refine, synthesize, separate, and process. The additives can also be high value specialty chemicals that can be quite expensive.
You can. With the routine sales and rebates you can buy top synthetics around $2.00-$2.75 all during the year. April is such a month. Take advantage of it. Anyone who says they cost $5/qt or more just isn't looking very hard.
Motor oils are dirt cheap....at least on sale. Let the general public buy them for $6-$10/qt.
Motor oils are dirt cheap....at least on sale. Let the general public buy them for $6-$10/qt.
The AutoZone December clearance sale at $2/qt on PP/QSUD allowed a number of forum members to get "free" oil after rebates. Others were getting 15c-50c/qt clearance oil deals they found out at other outlets. There's always a deal somewhere on oil.
I've only been able to get synthetics for $2/qt after rebate. But, I'll eventually get my stash of "free" oil.
I've only been able to get synthetics for $2/qt after rebate. But, I'll eventually get my stash of "free" oil.
The cost of the oil is more than the crude, it's the research and development and additives, so hopefully lower crude prices help them develop better products.
MolaKule
Staff member
I would say it is caused by a number of factors:
1. Additive component chemistry is getting more exotic and expensive,
2. Higher levels of crude processing,
3. Engine Oil specifications require the use of more synthetic bases,
4. Test lab instrumentation costs have risen,
5. Testing has become more time consuming,
6. Government regulations,
7. Cost of Marketing has risen.
1. Additive component chemistry is getting more exotic and expensive,
2. Higher levels of crude processing,
3. Engine Oil specifications require the use of more synthetic bases,
4. Test lab instrumentation costs have risen,
5. Testing has become more time consuming,
6. Government regulations,
7. Cost of Marketing has risen.
Last edited:
If you are concerned about the pprice you are paying for oil, I could ship some over for you next time I see some on sale....
I have wondered this too. I suspect it is because companies are quick to raise prices but very slow to lower them. Like the other posters said I think companies have decided to lower prices thru rebates so they can quickly eliminate the rebate if oil prices spike up. The only way to win to look for the big rebates. Mobil-1 has $10 off right now.
Motor oil is cheap in the US, even if you don't buy it on sale.
See what it costs in Europe, or down under, and you'll be stunned. Even our Canadian neighbors are paying much more than we are for motor oil.
See what it costs in Europe, or down under, and you'll be stunned. Even our Canadian neighbors are paying much more than we are for motor oil.
Originally Posted By: Ducked
Brent is a bit crude.
That's what she said!!
Brent is a bit crude.
That's what she said!!
There are 42 gallons in a barrel of crude oil and virtually all of it is turned into some kind of product. So, even when crude oil was $100/barrel, the crude oil cost of a gallon of motor oil was only $2.50 or so. With crude oil at $50/barrel, this would be reduced to around $ 1.25 - hardly a big deal.
As others have noted, the real cost of motor oil is the refining, hyrdrocracking, additives, packaging and distribution. Not to mention R&D: motor oil is a lot more complex than gasoline and more subject to constant tweaking and evolution.
As others have noted, the real cost of motor oil is the refining, hyrdrocracking, additives, packaging and distribution. Not to mention R&D: motor oil is a lot more complex than gasoline and more subject to constant tweaking and evolution.
Originally Posted By: Astro14
Motor oil is cheap in the US, even if you don't buy it on sale.
See what it costs in Europe, or down under, and you'll be stunned. Even our Canadian neighbors are paying much more than we are for motor oil.
This^. The US is a capitalist system, you can charge what the market will bear. If you charge too much, you don't sell much product and you learn a lesson. If your economics "perfessor" was a communist maybe you think differently. When industry is state run and bureaucrats set prices see what you get. It won't be inexpensive motor oil, now will it?
Motor oil is cheap in the US, even if you don't buy it on sale.
See what it costs in Europe, or down under, and you'll be stunned. Even our Canadian neighbors are paying much more than we are for motor oil.
This^. The US is a capitalist system, you can charge what the market will bear. If you charge too much, you don't sell much product and you learn a lesson. If your economics "perfessor" was a communist maybe you think differently. When industry is state run and bureaucrats set prices see what you get. It won't be inexpensive motor oil, now will it?
+1
Originally Posted By: Danh
There are 42 gallons in a barrel of crude oil and virtually all of it is turned into some kind of product. So, even when crude oil was $100/barrel, the crude oil cost of a gallon of motor oil was only $2.50 or so. With crude oil at $50/barrel, this would be reduced to around $ 1.25 - hardly a big deal.
As others have noted, the real cost of motor oil is the refining, hyrdrocracking, additives, packaging and distribution. Not to mention R&D: motor oil is a lot more complex than gasoline and more subject to constant tweaking and evolution.
+1
Originally Posted By: Danh
There are 42 gallons in a barrel of crude oil and virtually all of it is turned into some kind of product. So, even when crude oil was $100/barrel, the crude oil cost of a gallon of motor oil was only $2.50 or so. With crude oil at $50/barrel, this would be reduced to around $ 1.25 - hardly a big deal.
As others have noted, the real cost of motor oil is the refining, hyrdrocracking, additives, packaging and distribution. Not to mention R&D: motor oil is a lot more complex than gasoline and more subject to constant tweaking and evolution.
+1
In recent oil industry news, nearly all of the major oil companies and several independents announced in March that they were increasing their motor oil prices 4-6%.
JHZR2
Staff member
Originally Posted By: HerrStig
Originally Posted By: Astro14
Motor oil is cheap in the US, even if you don't buy it on sale.
See what it costs in Europe, or down under, and you'll be stunned. Even our Canadian neighbors are paying much more than we are for motor oil.
This^. The US is a capitalist system, you can charge what the market will bear. If you charge too much, you don't sell much product and you learn a lesson. If your economics "perfessor" was a communist maybe you think differently. When industry is state run and bureaucrats set prices see what you get. It won't be inexpensive motor oil, now will it?
So you're implying that the state sets the pricing of lube oils in these other places?
Originally Posted By: Astro14
Motor oil is cheap in the US, even if you don't buy it on sale.
See what it costs in Europe, or down under, and you'll be stunned. Even our Canadian neighbors are paying much more than we are for motor oil.
This^. The US is a capitalist system, you can charge what the market will bear. If you charge too much, you don't sell much product and you learn a lesson. If your economics "perfessor" was a communist maybe you think differently. When industry is state run and bureaucrats set prices see what you get. It won't be inexpensive motor oil, now will it?
So you're implying that the state sets the pricing of lube oils in these other places?
Originally Posted By: JHZR2
Originally Posted By: HerrStig
Originally Posted By: Astro14
Motor oil is cheap in the US, even if you don't buy it on sale.
See what it costs in Europe, or down under, and you'll be stunned. Even our Canadian neighbors are paying much more than we are for motor oil.
This^. The US is a capitalist system, you can charge what the market will bear. If you charge too much, you don't sell much product and you learn a lesson. If your economics "perfessor" was a communist maybe you think differently. When industry is state run and bureaucrats set prices see what you get. It won't be inexpensive motor oil, now will it?
So you're implying that the state sets the pricing of lube oils in these other places?
What did oil cost in the Soviet Union where ONE set of wiper blades, for example was made for each car sold. Drivers REMOVED their blades after parking for fear they would be "borrowed". A spare set of blades fetched a lot of money. I'm not IMPLYING the state "apparat" set the prices of consumer goods, I'm STATING it. Your evidence they did not is WHAT? I've seen video of Russian drivers in the good old days buying gas bootlegged from government supplies. I'm sure that was close to "free". Why did they have to do that...because of government "production allocations" in a country AWASH in oil.
Originally Posted By: HerrStig
Originally Posted By: Astro14
Motor oil is cheap in the US, even if you don't buy it on sale.
See what it costs in Europe, or down under, and you'll be stunned. Even our Canadian neighbors are paying much more than we are for motor oil.
This^. The US is a capitalist system, you can charge what the market will bear. If you charge too much, you don't sell much product and you learn a lesson. If your economics "perfessor" was a communist maybe you think differently. When industry is state run and bureaucrats set prices see what you get. It won't be inexpensive motor oil, now will it?
So you're implying that the state sets the pricing of lube oils in these other places?
What did oil cost in the Soviet Union where ONE set of wiper blades, for example was made for each car sold. Drivers REMOVED their blades after parking for fear they would be "borrowed". A spare set of blades fetched a lot of money. I'm not IMPLYING the state "apparat" set the prices of consumer goods, I'm STATING it. Your evidence they did not is WHAT? I've seen video of Russian drivers in the good old days buying gas bootlegged from government supplies. I'm sure that was close to "free". Why did they have to do that...because of government "production allocations" in a country AWASH in oil.
Last edited:
- Status
Similar threads
- Locked