This just in from AMSOIL:
Effective April 8, we are implementing a temporary surcharge across our product portfolio. The surcharge will vary by product type and be built into the product price rather than applied during the transaction so it is abundantly clear for customers.
I, personally, have seen competitor pricing increase significantly over the past couple of years, and AMSOIL pricing has stayed the same on their lubricants ever since I’ve been a dealer (2023).
This morning AMSOIL sent out a bulletin to dealers that gives further clarification and outlines their strategy, market position and goals through this challenging time.
We have heard from some Dealers who are understandably frustrated by the recent price increases and raw-material shortages tied to the crisis in the Middle East. Some have asked why AMSOIL is affected at all and why we cannot simply buy only “Made in America” materials.
We want to clarify an important fact about the global lubricants market.
While AMSOIL manufactures our products in the United States and sources the vast majority domestically, the raw materials used to make lubricants are part of a global supply chain. Crude oil, base oils, additives and many specialty chemical components are bought and sold in worldwide markets.
Crude oil is priced globally. Whether oil is produced in Texas, North Dakota, Canada or the Middle East, its price is largely determined by the world market. When supply from the Middle East is threatened, global prices rise for everyone. U.S. refiners, additive suppliers and chemical manufacturers all pay more for their raw materials, and those increased costs eventually affect every lubricant company.
In addition, many critical lubricant ingredients are only produced by a small number of suppliers around the world. Even when we purchase from an American supplier, that supplier may rely on raw materials, feedstocks or specialty chemicals that originate overseas. And as global entities, these suppliers have commitments to customers around the world and they tap their U.S. manufacturing facilities to help supply foreign customers. As a result, disruptions anywhere in the world can reduce availability and increase costs everywhere.
Facilities responsible for a huge percentage of global base oil production have been permanently damaged. As a result, supply is short for the entire world, and prices are up substantially for the entire world. Base oils have increased up to 100% in price. Additives are up at least 15%. Diesel fuel is up over 20%, driving significant increases from freight companies. Approximately 50% of the world’s supply of polyethylene, which is used to make plastic bottles, has been disrupted, driving increases of 50%-80%. The list goes on.
This is not unique to AMSOIL. Every lubricant manufacturer in North America is facing the same challenges.
What makes AMSOIL different is how we respond. Our sourcing team has worked aggressively to secure supply and maintain availability. Our product development team has developed alternative formulations where possible to preserve critical materials without sacrificing performance. We are doing everything we can to minimize the impact on Dealers and customers while continuing to deliver the quality and protection AMSOIL is known for.
We know price changes are difficult, and sometimes frustrating. Our commitment remains unchanged: to manufacture premium products in America, maintain reliable supply and support your business through these challenging market conditions.
Thank you for your partnership.
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