Clean Harbors announced this week that its Safety-Kleen waste oil and rerefining subsidiary will raise rates for the collection and management of used engine and industrial oils starting Oct. 1. The company said the adjustments are intended to preserve the quality of services at its rerefinery operations amid ongoing market pressures and rising costs.
“Our rerefined products are central to reducing environmental impact by converting waste oils into more sustainable materials.”
According to Brian Weber, president of Safety-Kleen Sustainability Solutions, “ongoing declines in market prices for base oil, vacuum gas oil, and recycled fuel oil continue to reduce the current value of these recovered materials,” while at the same time, the company is experiencing higher costs tied to fleet and facility maintenance, skilled labor, and the effects of tariffs on the supply chain.
Weber added that in order to preserve both financial performance and service standards during a seasonally weaker period, the company must adjust rates again. Safety-Kleen last raised rates 11 months ago, citing similar market pressures.
Safety-Kleen produces 574,000 metric tons of API Group II base oil annually from six plants across the U.S. and Canada. The company collects waste oil from more than 100,000 customers, accounting for one out of every five gallons collected in North America.