ExxonMobil and Chevron informed U.S. customers of finished lubricant price hikes that take effect in early October, following an earlier markup by Shell Lubricants. Several smaller and independent suppliers have also instituted finished lube price increases taking effect in mid to late September.
ExxonMobil informed customers that prices for ExxonMobil branded and unbranded lubricants and greases will increase by up to 4 percent effective Oct. 3.
Chevron told customers prices for all of its lubricating oils would rise by 3 to 6 percent effective Oct. 9.
The price hikes by the two majors follow Shells earlier in August, which was an increase by up to 4 percent on finished lubricants, effective Sept. 23.
Several independent lubricant suppliers also notified customers of upcoming price increases.
Citing a volatile market where raw material and freight costs have escalated, Cam2 told customers it would raise prices 20 cents per gallon on bulk lubricants, 25 cents per gallon on packaged lubricants and 3 cents per pound on all greases effective with orders placed after Sept. 15.
Smittys Supply notified customers it would increase prices 20 cents per gallon on bulk lubricants, 25 cents per gallon on packaged lubricants and 3 cents per pound on all greases effective with orders placed on or after Sept. 16. The company said the increase was due to [cost] increases of raw materials used in the manufacturing of finished lubricants.
Rerefiner Safety-Kleen notified customers it will raise prices on its blended products 20 cents per gallon effective Sept. 27.
Most of the notices indicated some specific prices may increase more or less than these general guidelines.
One industry source suggested the latest round of finished lubricant price increases could be a price grab based on the brief run-up in crude costs, now largely fueled by turmoil in the Mideast, when demand is actually quite slack.
Another source echoed that, noting its a time-tested truth that, any kind of instability or perceived instability over in the Middle East can impact whats going on in the world markets.