Two more U.S. oil majors announced price hikes for finished lubricants during the past week. Chevron and ConocoPhillips plan to impose markups ranging from 3 percent to 10 percent and 5 percent to 9 percent, respectively, joining a round of increases triggered by ExxonMobils announcement two weeks ago.
In an Aug. 30 letter obtained by Lube Report, Chevron told distributors it will raise prices for lubricating oils by an average of 6 percent to 10 percent and those on gear lubes and greases by an average of 3 percent to 5 percent. All of the changes are scheduled to take effect Oct. 2. ConocoPhillips began this week to notify distributors of its increase, which is effective Oct. 11, a distributor said.
Those increases are in line with ExxonMobils increase of 5 percent to 9 percent, which was announced Aug. 21 and takes effect Oct. 1. The three companies have blamed their movements on higher costs for base oils, additives and packaging.
There was no word yet, sources said, of changes from other big lubricant marketers – including Shell, Castrol, Valvoline and Citgo. Several independent marketers have reportedly announced their own hikes but have declined to confirm themto Lube Report.
The current round of hikes is the third this year for finished lubricants in the United States, with the first occurring near the end of the first quarter and the second around mid-year. With the latest increases, observers noted, branded passenger car motor oil prices will have risen by approximately $1 per gallon.