2019 Lubricant Price Increase coming, notice from distributor

Status
Not open for further replies.

Y_K

Joined
May 29, 2009
Messages
2,826
Location
WA (USA)
Got this in an email from a distributor I use:
===================================


There have been some big changes in the lubricant market recently, and our account management team wanted you to know as soon as possible. In 2019, the cost of base oils and additives have increased. As a result, finished lubricant prices will rise in the coming weeks. Here's why:

Infineum, one of the two major suppliers of Heavy Duty Motor Oil (HDMO) additives, has recently reported a key supplier cannot meet its production requirements, limiting customer fulfillment by half. Infineum is one of the leading companies supplying additives to major oil companies necessary for finished lubricants. On the heels of that news two other additive companies have announced price increases effective by the end of May. Finally, the base oil market has had two price increases in 2019 so far. Combined, the increases in base oil cost and additive supply issues are driving multiple finished lubricant price increases this year.

Due to these factors, nearly every major and sub-major finished lubricant brand has announced either two small or one large price increase to take effect throughout May. As this is time sensitive information, we felt it merits an official communication.
 
I wonder if this, combined with the rising price of gas, will start to curb demand and cause prices to fall towards the end of 2019?
 
Originally Posted by Y_K
Infineum, one of the two major suppliers of Heavy Duty Motor Oil (HDMO) additives, has recently reported a key supplier cannot meet its production requirements, limiting customer fulfillment by half.


This is interesting, as I get the Fuels & Lubes (F&L) newsletter daily. At least 2-3 times per week, there are articles about additive suppliers and/or new lubricant plants ramping up productions or adding new capacity. Considering that some of the big players mentioned are talking about supporting a market of something like 2 million TONS of lubricants by CY2020, I don't understand how there could be a shortfall.

Probably just more behind-the-scenes politicks causing price creep for all things consumer-petroleum driven to continue to artificially inflate the hybrid/PHEV market.
 
As if motor oil prices weren't too high already...just keep sticking it to the consumer...
 
Originally Posted by grampi
As if motor oil prices weren't too high already...just keep sticking it to the consumer...



You are really not aware motor oil prices are very cheap. Nothing like a person who believes Commie values should be imposed on the masses.
 
Originally Posted by dave1251
Originally Posted by grampi
As if motor oil prices weren't too high already...just keep sticking it to the consumer...



You are really not aware motor oil prices are very cheap. Nothing like a person who believes Commie values should be imposed on the masses.


When I see the store brand dino oils priced at $5 a qt, I don't see how you can think that's cheap...and how is not wanting consumer gouging a commie value?
 
Last edited:
Originally Posted by grampi

When I see the store brand dino oils priced at $5 a qt, I don't see how you can think that's cheap...and how is not wanting consumer gouging a commie value?


It's been that way for years now though. In fact, I can't even remember when the price for a quart of motor oil took off the way it did. 10yrs ago maybe? Before that, it seemed like conventional motor oils were a buck or two a quart forever.

Figures too. Napa full synthetic 5qts jugs were just something like $16.79 on sale. I didn't grab enough.
 
Last edited:
Two wholly different markets. Crude is "high" but I think the OPEC/Russia collusion will start to crack over the next year. But going after people who buy from Iran, and the continuing implosion of Venezuela will maintain upward price pressure. Time will tell. My brothers in North Dakota don't mind one bit in the meanwhile.

Retail has changed. Notice how Amazon doesn't have any deals any more? Or are actually higher in price? Now that they've hooked everyone on the convenience of laziness they're raising priices like the neighborhood crack dealer. And a whole raft of online marketing consultants have finally figured out how to not cannibalize each others' markets and keep prices high.

Again, two totally different concepts.
 
Originally Posted by grampi
Originally Posted by dave1251
Originally Posted by grampi
As if motor oil prices weren't too high already...just keep sticking it to the consumer...



You are really not aware motor oil prices are very cheap. Nothing like a person who believes Commie values should be imposed on the masses.


When I see the store brand dino oils priced at $5 a qt, I don't see how you can think that's cheap...and how is not wanting consumer gouging a commie value?


Supertech 5w30 High Mileage Full Synthetic: $12.97 for 5qts, or $2.594 per quart.

Supertech 5w30 Conventional: $12.88 for 5 quarts, or $2.576 per quart.

Havoline 5w30 full synthetic smart change box: $19.97 for 6 quarts, or $3.328 per quart.

Havoline 5w30 conventional smart change box: $14.97 for 6qts, or $2.495 per quart. Cheaper than Walmart's Supertech!

Where are you finding these store brand oils for more than $5 a quart? Even Mobil1 is $22.88 for 5 quarts.
 
I am thinking the other two additive companies are possibily Afton and Oronite???

This sounds somewhat familiar to what we heard towards the middle of last year in May and June if I remember correctly...
 
Originally Posted by Skippy722
Originally Posted by grampi
Originally Posted by dave1251
Originally Posted by grampi
As if motor oil prices weren't too high already...just keep sticking it to the consumer...



You are really not aware motor oil prices are very cheap. Nothing like a person who believes Commie values should be imposed on the masses.


When I see the store brand dino oils priced at $5 a qt, I don't see how you can think that's cheap...and how is not wanting consumer gouging a commie value?


Supertech 5w30 High Mileage Full Synthetic: $12.97 for 5qts, or $2.594 per quart.

Supertech 5w30 Conventional: $12.88 for 5 quarts, or $2.576 per quart.


Havoline 5w30 full synthetic smart change box: $19.97 for 6 quarts, or $3.328 per quart.

Havoline 5w30 conventional smart change box: $14.97 for 6qts, or $2.495 per quart. Cheaper than Walmart's Supertech!

Where are you finding these store brand oils for more than $5 a quart? Even Mobil1 is $22.88 for 5 quarts.


In every retail store I visit. Where are you finding these prices? Walmart is the only place I've been to that sells oil for under $3 a qt for dino...
 
Last edited:
Originally Posted by Skippy722

Where are you finding these store brand oils for more than $5 a quart? Even Mobil1 is $22.88 for 5 quarts.


I wondered the same thing but then remembered that we have a subset of people here who will gladly pay 1.5X as much or more for the same oil so as to keep the moral high ground to never shop at WM.
 
Originally Posted by Ifixyawata
Originally Posted by Skippy722

Where are you finding these store brand oils for more than $5 a quart? Even Mobil1 is $22.88 for 5 quarts.


I wondered the same thing but then remembered that we have a subset of people here who will gladly pay 1.5X as much or more for the same oil so as to keep the moral high ground to never shop at WM.


WM is the only place I buy my oil...it's too expensive anywhere else...
 
Originally Posted by grampi
Originally Posted by Ifixyawata
Originally Posted by Skippy722

Where are you finding these store brand oils for more than $5 a quart? Even Mobil1 is $22.88 for 5 quarts.


I wondered the same thing but then remembered that we have a subset of people here who will gladly pay 1.5X as much or more for the same oil so as to keep the moral high ground to never shop at WM.


WM is the only place I buy my oil...it's too expensive anywhere else...


I would only go somewhere besides WM if it's a deep clearance. I'm not saying WM is a great place in any way but it's cheap.
 
Originally Posted by grampi


In every retail store I visit. Where are you finding these prices? Walmart is the only place I've been to that sells oil for under $3 a qt for dino...


At both my local Walmart's. Meijer prices are the same/within a $1 of each other. I'm picking up my box of Havoline synthetic tomorrow, gonna grab a new filter while I'm at it.

Originally Posted by Ifixyawata


I wondered the same thing but then remembered that we have a subset of people here who will gladly pay 1.5X as much or more for the same oil so as to keep the moral high ground to never shop at WM.


I hate Walmart, only go there if I can get a good deal on something, but I'm not paying a ridiculous markup either.
 
Originally Posted by grampi
Originally Posted by dave1251
Originally Posted by grampi
As if motor oil prices weren't too high already...just keep sticking it to the consumer...



You are really not aware motor oil prices are very cheap. Nothing like a person who believes Commie values should be imposed on the masses.


When I see the store brand dino oils priced at $5 a qt, I don't see how you can think that's cheap...and how is not wanting consumer gouging a commie value?


Prices for motor oils, when the quality of today is factored in and the price comparison is adjusted for inflation, are indeed pretty reasonable. There is no such thing as consumer gouging. The product will follow the path to the market that offers the highest price for it. And that usually follows the path of most demand. In other words, those who need it most will get it in free market economy. And it isn't like there is limited number of brands and oils on the shelves. Many places are swimming with a variety of oil choices. Competition is pretty strong and there always seems to be rebates and specials going on. It is not uncommon for folks to even get full synthetic name brand oils for less that $3 a quart once rebate is factored in.
 
Originally Posted by TiredTrucker
And it isn't like there is limited number of brands and oils on the shelves. Many places are swimming with a variety of oil choices. Competition is pretty strong and there always seems to be rebates and specials going on. It is not uncommon for folks to even get full synthetic name brand oils for less that $3 a quart once rebate is factored in.


I hear you, but I see very little variety in my local stores. When motor oils were cheap, I remember my WalMart having and entire long isle dedicated to quarts and jugs of various flavors of motor oil. Now it's a tiny section and very little in terms of choice. It was the same with the other department stores of the day like K-Mart, etc. Huge oil/filter selection.

Like you say is the shrinking choice a result of people having shops do their oil changes for them and the market adjusting? Could be.
 
Last edited:
Status
Not open for further replies.
Back
Top