Fresh Round of Price Increases to Commence May 2022
Spike Will Affect Finished Lubricants, Greases, and Specialty Products.
Chevron Provides Some Relief with Antifreeze/Coolant Decrease
Major suppliers have announced yet another price increase between 10-15% on finished lubricants, greases, and specialty products. SCL will be passing along these price movements effective on manufacturing dates listed below. As of today, Chevron will be decreasing their antifreeze/coolants up to -9% and NO increase on DEF.
“Extraordinary inflationary pressure” has been generally cited for the increases. Reasoning provided by suppliers is aligned with the macroeconomic news dominating public and industry discussions including base oil prices due to global demand outpacing supply on raw materials, labor and transportation costs, extended lead times, and uncertainty and delays within the supply chain.
“It is difficult to envision this situation improving anytime soon, with suppliers already hinting at a challenging inflationary environment in the back half of the year,” predicted SCL General Manager, Travis Becktel. “Our strong recommendation is to place orders as soon as possible, look at bulk options, and we implore you to please speak to your SCL Representative about cost saving measures.”
According to Kiplinger’s Economic Forecast, the inflation rate is expected to ease further over the rest of this year, but will likely end 2022 at a still-high rate of about 6.3%. In 2023 the rate should fall faster, down to 3.0% by the end of the year.
“We’re working with suppliers every day to first ensure that we have product in stock. and we have been successful in this area where many distributors have not,” added Becktel. “And many customers are benefiting from working with our team to reduce overall operational costs so that price pain can be offset through other measures that help secure a company’s bottom line.”
SCL has created a Resource Page to guide customers towards reducing operational cost in this challenging environment.
Price Increase Announcements:
Houghton Increase May 23, 2022
Lucas Price Increase June, 1 2022
P66 Lubricants Increase June 6, 2022
SCL /Olympus Price Letter – June 6 2022
Shell Price Increase June 15, 2022
Chevron US Price Communication June 20, 2022
Chevron Revised General Increase July 11, 2022
Chevron Antifreeze/Coolants DECREASE up to -9%
Mobil Price Increase Letter- 7.1.22
ALS – SCL Oil Analysis July 1, 2022 @ 10% for samples and @ 25% for shipping