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While the lubricant market is no stranger to price changes, word is this year’s shaping up to be a doozy. So, we thought we’d take a few minutes to do some digging and see what kind of answers we could find.
Who’s Announcing Price Increases?
According to Lubes’n’Greases February 2018 Newsletter:
Excel Paralubes (Phillips 66/Flint Hill Resources), Petro-Canada, Avista Oil and Kleen Performance Products joined Chevron in seeking early February increases, which were said to be driven by the current supply/demand balance, together with steeper feedstock, transportation, and labor costs.
At the bottom of the newsletter, you’ll find a handy dandy group of tables with a complete list of the groups who’ll be raising their costs, which includes…well pretty much everyone. To see for yourself, learn more.
What’s Driving Up Costs?
Turns out, this answer’s like that dreaded relationship status update from that one Facebook friend who’s life perpetually in upheaval: it’s complicated.
According to a JobbersWorld article from last November, you can attribute the cost increases to the things you’d imagine, like an increase in base oil costs, but that’s just one factor at play. The cost of freight, railroad industry changes and packaging materials all play a role.
You can get the whole story by clicking here.
What’s in Store for the Rest of the Year?
Word around the water cooler is this may not be last round of increases we see in 2018. So if your business is dependent upon lubricant sales, brace yourself for more despite the 2017 increases. It’s an economic reality we’re all dealing with, not to mention a cost hurdle that’s going to be difficult to avoid passing on down the line.