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Breaking News - ExxonMobil Bumps Baseoil Prices |
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Just when you thought the week was over, ExxonMobil
announced today that effective on April 21, 2008 it
will increase the bulk wholesale prices on lube
basestocks by $0.20 a gallon on all grades.
So come Monday morning you have to wonder what this
means for the price of finished lubricants. Here we
are, at the front end of pushing through the most
recent round of price increases on finished lubes
and base oil prices once again are moving up.
Jobbers World suspects the next few weeks should be
very interesting.
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Change at the Top of Shell Lubes US |
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According to a number of marketers doing business
with Shell, there was a significant change at the
top of Shell's US lubricants management team over
the past week. That change is the departure of Larry
Cekella.
Larry began his career with Texaco in 1983. He then
joined Shell with the Alliance in 1998. Since that
time, he has served in several senior roles at Shell
including VP Sales in the US and General Manager
Transport & Industry. Prior to his departure he was
the general manager of the B2B lubricants business
at Shell.
Larry has joined Precision Fluids Inc., as
President effective May 2008. Precision specializing
in fluid equipment services.
Shell has yet to announce a replacement for
Larry.
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Shell Bumps Buyback Fees 2 Cents a Gallon |
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Although buybacks fees have always been a very
contentious issue for lubricant marketers, these
fees have gained even more attention over the past
year due to the escalating price of fuel. Whereas
the buyback fees of last year may still seem fare
with the majors today, marketers say they are not.
In the views of most marketers JobberWorld speaks
with, current buyback fees do not take into account
the recent run-up in the price of fuel (let alone
increases in labor costs, insurance and others).
They say, whereas the price of diesel fuel alone has
gone up more than 30% in the last year, their
buyback fees have remained the same.
Although marketers say Shell's recently announced
$0.02 gallon increase in buyback fees is not enough
to cover their increased cost of fuel to deliver
buyback business, most say; it's a start and at
least Shell appears to be listening to them when
they say it cost more for fuel today than it did
yesterday. At the same time, however, many feel if
Shell, and other majors are really listening, they
will realize a two cent a gallon increase is
woefully short of what is really fare when you take
into account the higher price of fuel.
An in-depth analysis of this issue (both
inbound and outbound transportation fuel costs) will
be examined in the upcoming print edition of Jobbers
World.
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