With the price of crude oil decreasing, why hasn’t AMSOIL INC. reduced lubricant prices?
Posted: February 17, 2015 - News Article (AMSOIL Inc)
The price of oil has decreased to levels not seen in years. Several lubricant manufacturers have recently responded with finished-lubricant price reductions of roughly 3-4 percent. AMSOIL Dealers and customers may be wondering why AMSOIL INC. has yet to follow suit.
The competing manufacturers that have announced finished-lubricant price decreases, including Shell, Phillips 66, ExxonMobil, Chevron, Castrol and Valvoline, each implemented numerous price increases since spring 2013. Since March 2013, Shell increased prices four times, Phillips 66 and ExxonMobil three times each and Chevron, Castrol and Valvoline two times each. AMSOIL held the line on pricing through this time of increasing raw material costs.
While Group I, II and III base oil prices have decreased, Group IV and V have continued to increase. In addition, prices of many of the high-performance additives used in the formulations of AMSOIL synthetic lubricants also continue to increase. So, while petroleum-derived products tend to follow crude prices, synthetics often follow a different set of criteria. AMSOIL keeps a close eye on raw material costs, and Dealers can be assured any future sustained price relief will be passed along to Dealers and customers.
Thomas F. Glenn, President Petroleum Trends International, publishers of JobbersWorld, wrote this article in the Feb. 3 edition of JobbersWorld that explains the relationship between crude oil prices and the price of synthetic lubricants. It’s an excellent resource to help Dealers – and their customers – better understand this issue. It is reprinted here with permission.
The competing manufacturers that have announced finished-lubricant price decreases, including Shell, Phillips 66, ExxonMobil, Chevron, Castrol and Valvoline, each implemented numerous price increases since spring 2013. Since March 2013, Shell increased prices four times, Phillips 66 and ExxonMobil three times each and Chevron, Castrol and Valvoline two times each. AMSOIL held the line on pricing through this time of increasing raw material costs.
While Group I, II and III base oil prices have decreased, Group IV and V have continued to increase. In addition, prices of many of the high-performance additives used in the formulations of AMSOIL synthetic lubricants also continue to increase. So, while petroleum-derived products tend to follow crude prices, synthetics often follow a different set of criteria. AMSOIL keeps a close eye on raw material costs, and Dealers can be assured any future sustained price relief will be passed along to Dealers and customers.
Thomas F. Glenn, President Petroleum Trends International, publishers of JobbersWorld, wrote this article in the Feb. 3 edition of JobbersWorld that explains the relationship between crude oil prices and the price of synthetic lubricants. It’s an excellent resource to help Dealers – and their customers – better understand this issue. It is reprinted here with permission.
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