Oil Marketers Brace Themselves for Lubricant Price Increases
Recently we received notification from some of our major and private label oil manufacturers that a 3rd round of lubricant price increases for finished lubricants are coming, beginning July and August of 2018. Notifications continue to trickle in, but as of June 25th, Exxon/Mobil, Shell, Phillips 66, Valvoline, Chevron, Castrol and Summit/Klüber Lubricants have submitted increase letters. As was the case previously, prices are set to increase yet again as a result of what Phillips 66 referred to as, “Increasing costs in the production and delivery of our products.” The factors cited across the board for all manufacturers as contributing to the price increase include:
- Heightened costs of raw materials
- Heightened cost of product manufacturing
- Increased delivery costs
These increases in price begin at the bottom and work their way up the chain, ultimately impacting oil marketers and consumers. As this will be the 3rd price increase in just over 6 months, we understand the fiscal impact of this news and will strive to support your fleet and business to create a plan to manage it in the best way possible. Ultimately, we are all impacted by fluctuations in price, so we will make every possible effort to support the offset of pending increases in cost and expense. Despite this news, we remain committed to providing our customers with the highest quality products, outstanding customer service and competitive prices.
Major Oil Manufacturer Price Increase Announcements
Below you will find links to price letters from some of our major and private label oil manufacturers on their 3rd finished lubricant price increase of 2018. As announcements come in from additional manufacturers, we will update links accordingly.
- Exxon/Mobil – 7/1/18 Price Increase up to 9%
- Shell Lubricants – 7/16/18 Increase up to 10%
- Phillips 66 – 7/23/18 Price Increase up to 9%
- Valvoline – 8/1/18 Price Increase up to 9%
- Castrol – 8/6/18 Price Increase up to 9%
- Chevron Lubricants – 8/1/18 Price Increase up to 9%
- Summit /Klüber Lubrication – 8/1/18 Increase up to 14%
Contact an SCL Consultant Today
We at SCL thank you for your continued business and we appreciate the opportunity to serve you. As the industry changes over time, you can count on us to support you in understanding pending market fluctuations such as finished lubricant price increases and to provide you with viable solutions to meet your product and bottom line needs. If you have any questions regarding these pending price increases, please contact an SCL representative today.