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BREAKING NEWS - Maxum Aquires Paulson Oil (POCO) |
Maxum Petroleum ("Maxum"), a leading energy
logistics company acquired Paulson Oil at the end of
last week.
Headquartered in Chesterton, Indiana, Paulson Oil (POCO)
is one of the largest fuel and lubricant
distributors in the Mid-west. The company was
founded in 1973 by Bob and Pete Paulson. POCO's
lubricant brands include CITGO, the Shell family of
brands, and Service Pro.
Maxum Petroleum, Inc.is a leading energy logistics
company. The company has grown to become the largest
lubricant distributor in the US through a series of
several large acquisitions of the past few years,
including Canyon State, General Petroleum, Petroleum
Products Inc, and Simons Petroleum.
And last month, Maxum, through one of its operating
subsidiaries, Simons Petroleum, acquired the assets
and business operations of Farmington Oil Company, a
regional petroleum marketer based in Farmington, New
Mexico.
More details to follow in the next edition of
Jobbers World Online News!
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Valvoline Follows the Crowd and Bumps Prices |
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Valvoline advised its marketers late last Friday
that it will increase the price of its lubricants by
11% effective January 21, 2008. This increase will
apply to all Valvoline lubricants and greases.
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Chevron Increases Prices on Small Packages |
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In addition to the price increases previously
announced by Chevron, the company advised its
marketers last week of a revision to the increase.
The revision is specific to lubricants sold in small
packages. Specifically this includes a $0.36 a
gallon increase for quarts and gallons.
This increase applies to Havoline and URSA, as well
as Supreme and Delo in small packages.
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Castrol did too |
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And for those that might have missed it, Castrol
announced an increase in its prices to marketers on
November 30.
Depending on product and package size, this
increase ranges from $0.44 to $0.76 a gallons.
Although announced prior to Chevron's revision
impacting small packages, Castrol's increase is also
heavier on packaged product.
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Low Prices - Caveat Emptor! |
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In a recent issue of Jobbers World Online we report
a supplier was getting aggressive on price and
marketers were being offered PCEO and HDEO at prices
under $4.00 a gallon in bulk. This news piece
garnered a good deal of attention; both positive and
negative.
On the positive side, some thought it was great that
while the majors were bumping prices up, at least
one supplier was "holding the line" with very
competitive pricing. Those in this camp felt this
supplier offered a good alternative to the major
brands and an opportunity to participate in a wider
, more cost sensitive segment of the business.
Others agreed and added that, this supplier was not
alone, they said "similar pricing" is available from
other independent lubricant manufacturers, and a
rerefiner.
But then there were the negative comments about the
news piece. These comments shared a common thread.
That being, although price is certainly important,
Jobbers World On-Line would have done marketers a
greater service if it had also included information
about what marketers should look out for when
considering the purchase, and ultimately resale of
low price products. While not pointing fingers at
any particular supplier, they say in some cases,
lower price can mean lower performance and/or
quality. And if it does, a lubricant marketer may
find that the price its business pays for selling
low cost lubricants can be very high. As a result,
they added, although there will always be good deals
in the marketplace, marketers and their customers
should carefully consider the quality and claims of
low cost lubricants before they buy.
So let's look at some of the things marketers and
end users need to be careful of.
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