Rising costs of raw materials, including base oils and additives, are to blame for the three rounds of price increases the lubricants industry is and has seen this year.
The third round of increases is upon us, with the average increase of finished lubricants across brands being around 6%. These increases are taking effect throughout the month of December, just in time for the cold weather.
Who is increasing their products?
These price increases are taking place in three rounds. The first round came in February and took place through March. Brands in this round included BP Castrol, Cam2, Chevron, Citgo, ExxonMobil, Omni Specialty Packaging Phillips 66, Shell, and Valvoline. Their increases fall between 3 and 8%.
The second round of increases took place mid-May into June, seeing increases ranging between 3 and 9%. BP Castrol, Cam2, Chemlube, Chevron, Citgo, ExxonMobil, Martin Lubricants, Old World, Pinnacle Oil, Shell, Smitty's Supply, and Valvoline are among those who announced increases in round two. Their increases fall between 3 and 9%.
What's going on in round 3?
Round three is coming up on December 1 and we will see increases throughout the entire month ranging from 4-9%. Brands in this round include Cam2 International, Chemlube, Chevron, ExxonMobil, Pinnacle Oil, Smitty's Supply, and Warren Oil.
Recent brand increase announcements are as follows:
- Phillips 66 announced a rise in lubricant prices of 6%, effective December 1.
- Omni Specialty Packaging will increase their bulk and packaged products by 6-9 percent%, effective —December 1.
- Citgo will implement a general increase of 4-8% on both branded and private label lubricants effective December 4.
- BP Lubricants USA will increase their lubricants up to 6%, effective December 11.
- Effecting both Castrol and BP-branded lubricants.
- Shell announced a rise in lubricant prices of 6%, effective December 11.
These prices will affect US customers in the coming weeks. For a full list of increases announced for the third round, check out this roundup at JobbersWorldBlog.com.
If you're in need of anything listed in the above brands, shop PSC today! We won't increase our prices until we restock at the new prices.