Increasing costs of raw materials and packaging impacting the manufacture of products, as well as an increase in transportation costs, are all being cited by major suppliers resulting in another round of price increases on finished lubricants. The prices of lubricating oils and greases will see a 12-20% increase on August 1, 2022.
“What we are hearing in this round is that large orders exceeding averages might not be honored at the current pre-increase pricing,” said Dan Dziwanowki, VP of Customer Solutions at SCL. “This indicates to us that the squeeze that suppliers are feeling from manufacturing and logistics cost increases is real”.
With well reported increases in inflation across the economy, and oil holding around $100/barrel, there are very few signs of optimism for companies looking to lower costs. As companies pass on increased costs, there are reports of consumers pushing back on consumption.
“The one available avenue that remains entirely under the control of companies is to look at their overall operational costs and identify ways to save money in one area to offset the bleeding in other areas,” noted Dziwanowski. “To sit back and just accept your current MPG, to not be considering alternative lubricants and other cost-savings solutions such as extending drain intervals, is simply letting the market run your business and that’s not a good situation to be in.”
SCL recommends being proactive in limiting the impact of this, and any future rounds, of price increases:
- Contact your SCL Representative to discuss cost-saving strategies, including saving on freight charges with larger order quantities.
- Review SCL’s “Energy Crisis Resource” with your team
- Place orders immediately to take advantage of lower prices and steer clear of inventory shortages.
- Monitor SCL’s list of Overstock items for discounted options
- Read the Shell Market Conditions Report to understand the trends
Effective August 1, 2022 Price Increase Announcements from Suppliers:
15% Sunoco Racing Fuel August 1, 2022
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