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Update Regarding Shell's Buyback Fees |
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JobbersWorld Online reported on Friday of last week
that Shell increased its buyback fees by $0.02 cents
a gallon. It should be noted, however, that this
increase reflects only one of two increases Shell
announced to its distributors earlier this month.
The first is a $0.05 a gallon increase that takes
effect on May 1, 2008. The second is a $0.02 a
gallon increase scheduled for September 1, 2008.
This represents a $0.07 a gallon by increase in
Shell's buyback fees by September 1.
Although its difficult to determine if these
increases will adequately cover the higher costs of
fuel moving forward, marketers continue to applaud
Shell for being sensitive to the skyrocketing price
of diesel fuel and its impact on delivery costs. In
addition, they say they are encouraged by some of
the progressive thinking Shell has expressed about
ways to address the variable costs in buyback
business in the future.
For those not familiar with buyback fees, these
are fees paid to lubricant distributors by major oil
companies to deliver product for the major to its
accounts. The fee is fundamentally a delivery fee.
In the case of Shell, these fees are typically
called Deliver for Our Account (DFOA) fees.
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SIMONS PETROLEUM ANNOUNCES STRATEGIC AGREEMENT WITH
LOVE'S TRAVEL STOPS |
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Simons Petroleum, Inc. ("Simons") announced today a
definitive agreement with Love's Travel Stops
("Love's"). Under the agreement, Love's national
travel center locations will become the anchor chain
of the successful Simons' Pathway Network, effective
May 9, 2008.
Created in 1994, Pathway Network provides trucking
fleets of all sizes with unique ways to control
volatile fuel costs through a variety of proprietary
offerings designed for over-the-road trucking
fleets. Pathway's 14 year relationship with its
current anchor chain, TravelCenters of America or
"TA", will officially end on November 7, 2008.
Simons' agreement with TA provides for a transition
period and the addition of the Love's locations,
beginning May 9, 2008, will facilitate the
transition period for all of Simons' customers and
give Pathway Customers additional options for
utilizing Pathway's programs at the Love's
locations.
Love's Travel Stops currently operates 150
Interstate facilities with plans to grow their
network of locations by 20 full facility sites per
year.
"We are excited for Love's to become Pathway's
new anchor chain. Both the Love's and Simons
organizations share similar values and we believe
Love's growth strategy is well matched with our
plans for the future." said Brad Simons, President
of Pathway Network.
In addition to the Love's locations, Pathway Network
will continue existing relationships with
Independent Truck Stop sites to ensure the same
nationwide coverage its customers have experienced
in the past.
Simons Petroleum, Inc. is a national marketer of
petroleum products, focused on providing a
comprehensive fuel and lubricant offering to
commercial and industrial industries. Hedging and
financial management tools, proprietary fuel
management applications, engineering and testing
services and custom products differentiate Simons in
the marketplace. Simons is an operating company of
Maxum Petroleum, Inc., based in Old Greenwich, CT.
Maxum is a leading independent energy logistics
company that markets and distributes a comprehensive
offering of refined petroleum products and services
to commercial and industrial customers.
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ExMo Introduces New "Advanced Fuel Economy Motor
Oil" |
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ExxonMobil announced earlier this month the national
launch of Mobil 1 Advanced Fuel Economy. It's a
synthetic motor oil that ExMo says can save
consumers fuel and benefit the environment by
reducing greenhouse gas emissions.
"Helping improve energy efficiency in modern
gasoline engines, Mobil 1 Advanced Fuel Economy
improves fuel economy by up to 2 percent compared
against 5W-30 and 10W-30 engine oils," said Alan
Kelly, president, ExxonMobil Lubricants &
Specialties Company.
If just one-third of U.S. motorists reduced their
gasoline consumption by 2 percent, almost 1 billion
gallons of gasoline and 8 million tons of carbon
dioxide emissions would be saved every year. This
would be equivalent to taking around 1.5 million
cars off the road.
With significant expansion in distribution, Mobil
1 Advanced Fuel Economy is now being made available
to consumers across the U.S. in major auto and
retail outlets.
Addressing the trend of car manufacturers moving
to lower viscosity oils, the two Mobil 1 Advanced
Fuel Economy products meet or exceed warranty
requirements for most GM, Ford, Chrysler, Honda,
Toyota, Mazda and many other imports. Mobil 1
Advanced Fuel Economy 0W-20 is recommended by
ExxonMobil for 5W-20 applications and Mobil 1 0W-30
is recommended for 5W-30 and 10W-30 applications.
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