Lubricants Price Increase Canceled

Please be advised that Chevron Lubricants and Valvoline are rescinding the previously announced general price increase on all lubricating oils and greases of up to 12%. This is due to recent changes in the marketplace that have resulted in reductions in the cost of raw materials used in manufacturing of their products. 
 
We thank you for your patience and understanding on this matter. We greatly appreciate your continued business and partnership. For questions on this price rescission, please contact your Greg’s Petroleum Service sales rep today.

A review of the US base oil industry in 2019

As a fuel and lubricant supplier, we pay careful attention to the industry and how it changes throughout this year. We all know that even small changes in the price of oil can have a significant effect on the consumer. In the lubrication world, the availability of base oils to create lubrication products can affect the cost and availability of widely used products. In the past year, some significant movements changed the U.S. lubrication industry. These developments may affect the supply and demand for certain products in the future, so our analysts are always keeping an eye on the industry changes so we can serve our customers best.

First, an overview of what base oils are. Base oils are a significant component of nearly every lubrication product. The American Petroleum Institute (API) has outlined five categories of base oils, the first three are all refined from petroleum crude oil, while the other two are mineral or plant-based products.

  • Group I: These types of base oils are often the cheapest on the market. They are solvent-refined and have a viscosity index range of 80-120, with less than 90% saturates. This category of base oil goes through the smallest amount of refining for lubrication products, so it is most suited for only minor lubrication needs.
  • Group II: These base oils have the same viscosity range and level of saturates as group one. However, this category undergoes a process known as hydrocracking, which is a more complicated refining process. This process gives the base oil more anti-oxidation properties as well as a more transparent color, but they remain very similar in application and price to group one oils.
  • Group III: These base oils go through an even more complicated refining process with higher pressure and heat, resulting in a higher viscosity index above 120.
  • Group IV:This category is made up of synthetic base oils, often made from polyalphaolefins or PAOs. Products made from group four base oils tend to have a higher temperature range and are great for extreme heat or cold.
  • Group V: The fifth group of base oils is a mix of everything. Nearly every other type of base oil, including mineral and plant-based oils, fit into group five. This category is used to service a wide variety of needs.

Now that you have a quick overview of what the different base oil categories are, it’s time to review the production of these oils this past year. This year was a year of change and development for the U.S. base oil production industry. Overall the pace of production was slower in 2019 than in the previous year, with an output of nearly 29 million barrels in the first six months of 2019 to 34 million barrels in the first six months of 2018. It is important to remember that many refineries perform maintenance and annual shutdowns during the first half of the year, which can affect output. This past year we did see some of the lowest production output in February and March compared to the previous year, but the outlook is not as dire as it would seem.

The downward trends of the past year indicate a changing market. Some of the U.S. industry’s biggest customers are no longer buying as they once were, while newer markets are opening. One of our nation’s biggest customers, China, is now building its base oil industry. China completed four new base oil refineries during 2019, and another primary market, Western Europe, recently completed a Group II base oil refinery in Rotterdam, the Netherlands. Additionally, India, another sponge of American oil products, has slashed its orders in favor of oil products from the Middle East.

Despite the loss of some exports to significant customers, new opportunities have risen. Exports have increased to Latin America and Mexico. Mexico has only one base oil refinery, so their demand for U.S. based products remains high. During this time of change, imports have slowed down to 7.5 million barrels compared to 8.3 million barrels in 2018. More U.S. products are staying in our country to be used here. Some other good news is that more Group III base oils will begin to be produced here, as Chevron is going to increase production at their Richmond, California plant. Group III oils are not produced in large numbers in the US, so this is a good sign of diversification for the industry.

The changes in the base oil market this past year may seem disconcerting. But like every industry, the lubrication product industry is subject to supply and demand. If manufacturers cannot get access to the materials they need to produce their products, prices and demand will rise. That’s why our team keeps a close eye on changes like these in the marketplace. We follow how these changes affect the price points of our most popular products for our customers so we can offer the best prices and service. It’s an essential part of our job that we do for you, so you don’t have to worry about it!

Early Bird Sponsor of the 2020 St Jude Dream Home Giveaway

St. Jude has partnered with Sinclair Broadcast Group and John Balfanz Homes, as well as many other local companies, to build and give away the 16th annual St. Jude Dream Home Giveaway house in Bakersfield, CA.

We are proud to announce that we are the Early Bird Sponsor of the St. Jude Dream Home Giveaway for the third year in a row! As part of our sponsorship, we will be giving away FREE FUEL FOR A YEAR to a very lucky winner!

To be entered into the drawing for a chance to win the St. Jude Dream Home Giveaway and/or one of several other main prizes, Kern County residents can reserve a ticket for $100 by visiting dreamhome.org or by calling 800-385-9134. Purchase your ticket by Friday, February 28th for your chance to win our prize of FUEL FOR A YEAR.

Each ticket purchased directly helps the kids and families of St. Jude. Since families never receive a bill for treatment, travel, food or housing; it’s a time where your support can really make a difference.

The goal is to sell 11,250 tickets to raise $1,125,000 for St. Jude Children’s Research Hospital. The winner of the St. Jude Dream Home Giveaway as well as all other prizes (including our FREE FUEL FOR A YEAR) will be drawn on Eyewitness News on April 23, 2020.

Help us make a difference and join the fight to end childhood cancer. Purchase your ticket today!

5 Ways to Save on Your Lubricant Supplies

Chevron and Valvoline recently announced an increase on all their U.S. lubricating oils and grease products, citing the rising costs of the raw materials to produce their products. These price increases will go in effect on 2/24/2020 (Chevron) and 3/02/2020 (Valvoline).

Other major lubricant brands, including ExxonMobil, Sinclair, SOPUS/Pennzoil-Quaker State Company and others have also announced an increase. Click here to learn more.

Price increases for fuel and fuel-related products can be disconcerting. We hear you. We make every effort to help our customers understand the reasons behind increased costs and to mitigate the effect it will have on their businesses. The world of lubricants is closely tied to the worldwide oil industry. This industry is often subject to volatility, which can cause price fluctuations. Geopolitical and weather events can negatively influence the market. In a recent blog, we highlighted some of the changes to the Base Oil industry, a critical factor in the manufacturing of lubricant related products. Just like the oil market, any change can lead to price fluctuations.

We know that you need these materials to do your work and adjusting to unexpected increases can eat a chunk of your profits. We work hard to provide our customers with quality service and offer the products they need at competitive prices. However, we can’t control the market, and global changes will always affect the price of goods required, especially in the fuel and lubricant world.

So what can you do when prices change? As a consumer, you can’t dictate what a product costs. But you can make savvy choices that will help you save money in the long run. We want to offer a few suggestions that will help you get the most out of your lubricant supplies.

Extend lubrication intervals (where appropriate). Don’t change a lubricant too soon or too late. Many machines should not be subject to interval-based oil changes at all. Instead, their lubes should be changed “on condition” and only when there is a true need. Let the oil tell you when it needs to be changed, not the calendar. Regular oil analysis will help determine when its time.

Choose your products wisely. One of the reasons lubricants can be so difficult to produce is the increased specialization offered by providers. Research and development over the years have produced lubricant products to address specific engine requirements and needs. The current line of Chevron lubricant products features a variety of products to solve nearly every engine problem. Our qualified team can help you order the products that are suited for your exact needs. By using these specialized products, you will keep your machinery in better working order and prevent costly maintenance.

Maintain proper storage. Improper lubricant storage can cost you money. Contaminated or expired supplies can eat into your budget. That’s why it’s so important to follow proper storage and usage procedures.

Sign up for our oil analysis program. Our oil analysis program is a great way to maximize your budget. Consistent checking of your lubricant and fuel supplies can prevent contamination and waste and help you optimize the use of your supplies. It will save you money in the long run, and that’s always a good thing.

Cut back on waste and spills. The unused product left in drums or other containers is a waste. Our team can help you choose the right amount of supplies for your needs, so you aren’t wasting your inventory. Employ proper dispensing procedures at your business to cut back on spills. Every drop counts, and we want to help you get every last one.

Again, we know that there’s never a good time for a price increase for any business. We understand the impact of this news and how it may affect your business. We will strive to support your business by creating a plan to manage the price increases the best way possible and will always help our customers save as much as they can. Greg's Petroleum Service strives to deliver quality products at affordable prices. For questions on how price increases across the industry may impact you, please contact your Greg’s Petroleum Service sales rep today.

Lubricants Price Increase Announcement

Please be advised that Chevron Lubricants and Valvoline have announced a price increase, of up to 12% on all lubricating oils and greases, due to increasing costs of raw materials impacting the manufacturing of their products. Chevron Lubricants price increase will be effective 2/24/2020, followed by Valvoline on 03/02/2020.

Recently, many base oil producers, including ExxonMobil, Motiva, Chevron, HollyFrontier, PetroCanada, Avista Oil, Paulsboro and SK, announced that they will be increasing the price of base oils. The base oil increase is a result of many factors in the global base oil market but is mostly driven by firm crude oil prices and a tightened supply.

The increased price of base oils is a critical factor in the rising cost of finished lubricant products. As a result, the major finished lubricant manufacturers have also announced a price increase on branded and unbranded lubricants and grease. Suppliers attribute the increase to the higher cost of raw materials including the rising cost of base oil.

Upcoming finished lubricants price increases include:

Supplier % Increase Effective Date
Chevron Up to 12% 2/24/2020
Valvoline Up to 12% 3/2/2020
ExxonMobil Up to 12% 2/24/2020
Shell/Pennzoil Up to 12% 2/24/2020
Phillips 66 Up to 12% 3/2/2020
Nu-Tier Brands/Gulf Lubricants Up to 10% to 12% 2/20/2020
Sinclair Up to 10% to 12% 3/1/2020
Petro Canada Up to 10% 3/16/2020

Greg's Petroleum Service delivers quality products and valuable service at competitive prices. We greatly appreciate your continued business and partnership. For questions on this price increase, please contact your Greg’s Petroleum Service sales rep today.

Let us show you what we offer

Our history is a part of everything we do. The founder of Greg’s Petroleum Service, Harold ‘Greg’ Gregory, began working at Ken Teague’s Standard Oil Distributorship in the early 1960s. While working at that gas station in Delano, the idea of Greg’s Petroleum began to form. By 1963 he had bought the business and established Greg’s Petroleum Service as a fuel supplier and delivery service.

Over the years, different members of the family have joined the business and helped it grow. The family work ethic and history with the community helped establish Greg’s Petroleum Service as a leading fuel provider in the San Joaquin Valley and the surrounding areas. Today the company services many customers in agriculture, oil, construction, retail, and other vital industries. Providing the fuel and lubrication supplies these businesses require is a privilege and honor for the Greg’s Petroleum Service family.

We can contribute part of the success we have been able to achieve as a business to our partnership with strong brands to offer superior fuels and lubrication technologies. The three leading brands that we provide to our customers are Chevron, Valvoline™, and Havoline.

Chevron began with the Pacific Coast Oil Co., right here in California in 1879. Since then, it has grown to become one of the largest fuel providers in the world. Chevron fuel products have been a part of our company since the very beginning. We trust Chevron fuels because they offer superior technology, including the Techron additive in gasoline products to help reduce emissions, improve performance and keep engines clean. These are a few of the top Chevron products most popular among our customers:

HDAX® 5200 Low Ash Gas Engine Oil, SAE 15W-40, 30, 40 is a high-quality engine oil for low maintenance machinery. It offers valve protection and excellent low-temperature performance. It cleans cranks and pistons to help prevent future maintenance issues.
Chevron 1000 THF hydraulic oil is a top-rated product among our agricultural customers. It is a high-quality hydraulic tractor fluid formulated for transmissions and brakes. It is multifunctional for use in a variety of machinery and is ISOCLEAN certified.
Meropa® 100 Industrial Gear Oil is another popular order item. This lubricant provides quality protection to industrial gears and machinery, even under the most demanding conditions. It helps to minimize harmful deposits, which can damage mechanisms and helps to maintain long equipment and oil life.

Valvoline™ is a leading provider of motor oils and lubrication products. It all started in 1866 when Dr. John Ellis developed a petroleum-based lubricant for steam engines. He founded a company to research and develop more lubrication technology. Now, Valvoline™ is a leading provider of lubrication supplies, and is ranked the #3 passenger car motor oil brand and operates nearly 1,170 oil change locations across the country. It is the only motor oil brand with a dedicated engine lab for product testing. Here are a few most popular items ordered by our customers:

Havoline lubricant and motor oil products are a division of Chevron. These synthetic products provide the best protection for your engine and enhance performance. Designed for the latest engine changes and technology, their range of synthetic oil products are very popular with our customers and offer a variety of benefits.

These are just a few of the products we offer to our customers. We have an exhaustive supply list and can find the products you need for your equipment and business needs. Our team can provide recommendations based on the type of equipment you use so you get the best value for your money. We believe in offering our customers the best. That’s why we work with some of the most trusted brands in the industry.

Besides fuel and lubrication delivery services, Greg’s Petroleum Service has expanded to offer additional services including:

  • Oil Analysis: This is a preventative maintenance program designed to extend the life of your equipment and prevent costly repairs. Our analysis team will test oils in your machinery and provide detailed reports on the condition of the oil and how it affects performance. Customers who sign up for this program can then make more informed ordering decisions and avoid expensive repairs and equipment downtime.
  • Branding opportunities: Greg’s Petroleum Service is pleased to offer retail branding opportunities for customers who wish to start their own franchise business. We work with Chevron to provide retail branding opportunities as well as Havoline and Valvoline™ to offer quick lube and instant oil change business opportunities.
  • Automotive Chemical Supplier: We offer our customers more than fuel and lubricant products. We are proud to support many automotive repair shops with the shop chemicals and supplies they need to run their businesses.

These are only a few of the services we offer at Greg’s Petroleum Service. There are many more, and each helps to support local businesses in the area. As a family business for over 50 years, we’ve been fortunate to build a great customer base right in our home. We are grateful for Harold’s vision and commitment in starting this company. We are also appreciative of all the members of our team who work hard each day to serve our customers. It’s why we love what we do!