Several major oil companies and independents have informed U.S. customers of increases in finished lubricant price increases over the last few weeks, citing rising base oil, additive and packaging costs as key factors.
An official with a distributor said the price hikes likely stem from a combination of those key factors, along with tightness on the heavy grades. Some of them also used transportation increases as a reason, this source told Lube Report. Fuel surcharges are up, and the freight rates – rail and truck rates – are also up. Railroads use crude directly as a relationship, and the trucks use diesel fuel postings.