Tumultuous Year for DEF, Lubricants, Additives + Greases Ends with Across the Board Hike
In what has been an unprecedented and tumultuous year for price increases on DEF, lubricants, additives and greases, manufacturers have once again announced an across-the-board hike of up to 15% on all products effective in December.
In order to align with effective dates of manufacturer announcements, SCL will observe price increases two times in December;
• Effective Dec. 1, prices for all Shell, Areoshell, Mobil, DEF and Olympus products will increase up to 15%
• Effective Dec. 15, price for Chevron, Philipps 66, Fuchs and all other brands will increase up to 15%
“This is an incredibly frustrating time for everyone in this industry and there’s really no way around that,” said SCL Vice President of Customer Solutions Dan Dziwanowski. “Prices are going up on products we can’t even source. It’s been extremely difficult to get empty pails to even hold product and to get quarts, gallons, and options from several major manufacturers in stock. To see prices continue to rise, it’s really putting salt on an open wound.”
In the latest round of increases, the sixth of 2021 on additives and lubricants, Shell has announced greases will increase 9% from November and coolants will increase to $0.60 per gallon on 100% and $0.30 per gallon on 50% mixtures.
Chevron, another major manufacturer for SCL customers, will increase greases and coolants by 15% effective on Dec. 14.
DEF is also going “sky high” – with prices continuing their trend of going up over $0.40 per gallon in the past two months alone. According to Jobbers World, “higher transportation, packaging and distribution costs, and the skyrocketing price of urea (one of two components in DEF),” are all to blame.
While the historic backlog at major ports in California has undoubtedly played a role in getting goods to suppliers, the continued escalation of costs is also attributed to “imbalances in the supply and demand of raw materials and production challenges some raw material suppliers are working through,” according to an announcement by ExxonMobil.
While the White House continues to stand behind predictions that record-setting inflation numbers will be short-lived, according to Reuters, “the record of the last four decades implies prices will continue climbing, generating significant upward pressure on inflation.”
“We don’t see this trend ending anytime soon,” Dziwanowski said. “We’re doing everything we can to help our customers weather this storm – encouraging bulk purchases, helping save through fleet evaluations and oil analysis, exploring premium products to generate long-term savings – but we’re also realistic in this being a difficult time for people across the board. Our goal is always to do whatever we can to alleviate any burden that we can and stay in communication so that our customers know what’s happening in the industry and what they can expect in the months to come.”
Current Price Increase Announcements:
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In a wide range of automotive, industrial and commercial sectors, SCL remains steadfast in its commitment to product and industry knowledge, performance satisfaction and superior logistics. We protect and optimize the machines that keep our country moving. For more information on how we can help with services including bulk purchasing or managing inventory, contact an SCL expert today.