Only three days after Chevron advised its marketers
that it will increase prices an average of 5% and 9%
on lubricating oils, and 3% to 5% on gear lubes and
greases, Shell lubricants announced to its US
marketers today that it will increase the price of
its lubricants by up to 10%.
Interestingly, the effective date of Shell's
increase is January 14, 2008. Historically this is
over twice the lead time majors typically give
marketers when they push through price increases.
Chevron's increase for example, kicks in on December
20, 2007.
What comes as no surprise, however, is that Shell
attributes this price increase to increasing costs
of raw materials used in the production and delivery
of its products. Although this language is often
considered by marketers as no more than cut and
paste verbiage from every other price increase
letter, it certainly makes sense given the recent
hike in the price of base stock
