More price increase news, this one from an unexpected source. Lubrizol, one of the chief manufacturers of the chemical additives packages used in motor oil formulation, announced a price increase of 12 to 20 percent last week. The company blames the rising cost of raw materials and higher energy-related production costs. Read about the increase here.
Tom Glenn at Jobbers World notes that since additives account for as much as 40 to 50 percent of the cost of formulating motor oil, end users can expect higher costs to come, even as oil companies are pushing through their second set of price increases this year. That can only mean still higher product costs for fast lube operators, the ugly reality of $130/barrel crude oil.