These businesses love DELO® products!

As a southern California fuel and lubricant supplier, we’ve worked with Chevron products from the very beginning. When our founder Harold ‘Greg’ Gregory first started working as a fuel supplier in the early 1960’s, we partnered with Standard Oil Distributorship. In 1984, they changed their name to Chevron Corporation, and we established Greg’s Petroleum Service.

As a loyal Chevron partner, we’ve watched the development of the company and its products. One of the most exciting developments was the DELO® line of oil products. The development of these products goes all the way back to 1935 when the first compounded diesel engine oil was first marketed. By 1941, the RPM Delo Special Motor Oil with extended drain capabilities was developed, and the Diesel Engine Lubricating Oil (DELO) trademark was filed. This product was instrumental during WWII for submarine engine maintenance.

Over the years, Chevron has invested great time and effort into the DELO® line of oil products, and millions now trust it. It’s one of our top sellers and a brand we always recommend to our customers. But how will it work for your business? We’ve gathered a few of the testimonials from a variety of different businesses that use Chevron products to share with you.

Ramler Trucking: Joey Voller has been the parts manager for over 20 years at Ramler Trucking located in Albany, MN. They are a regional business operating since 1954 specializing in local and long-distance hauling. They have a large fleet of refrigerated trailers, tanker trailers, and flatbeds. Most of their work is regional, but they occasionally deliver as far as Florida! They also offer maintenance and servicing for highway vehicles, which is Joey’s specialty. As the parts manager, Voller’s philosophy is simple. He wants the equipment to work properly, so the customer doesn’t have to come back. That’s why he trusts DELO® products. Voller often has his hands in the engines they service, and he’s noticed the DELO® difference. He shared that “if you drop the oil pan on an engine running Chevron Delo engine oils, the inside is going to be a lot cleaner; the oil pans are cleaner. With quite a few other oil brands there’d almost be a real dirty, slimy sludge when we removed the valve cover.” He credits the DELO® 400 XLE 15W-40 for extended engine life on the trucks he services, claiming that “we’ve seen extended engine life and we attribute it to the DELO 400 XLE 15W- 40 that we use. We do oil drains at about, on average 20,000 mile intervals.”

Landwehr Construction: Mike Kerfeld is the fleet manager at Landwehr Construction, a St. Cloud, MN-based construction company. They’re a large-scale company, offering various construction services in multiple states. They have over 250 pieces of equipment, including dozers, backhoes, crawler cranes, AT-cranes, and skid loaders. Every job is unique, which means that the equipment they use is always being tested in different circumstances. Kerfeld switched the company over to Delo 400 XLE 10W-30 and Delo 400 XLE 15W-40 synthetic products because of their versatility. They could use the Delo products in all their machinery and keep their lubricant supplies on the job site for easy access. Kerfeld credits the switch for helping them extend their oil drain intervals. He says, “We’ve been watching some of our oil drain intervals, even on some of the heavier used yellow iron, some of that stuff we run at 200 to 400 hours and…the samples showed us the DELO 400 XLE 10W-30 synthetic technology helped.” The extended drain intervals were a big help for the company and their large scale of work. Kerfeld says that ‘with our scope of work, I’d like to able to use the same product as much as I can year-round.”

Madsen Farms: Travis Madsen is the owner and operator of Madsen Farms in New Underwood, SD. He started the farm in 2000 and now has a staff of 20. They do everything from planting, equipment maintenance, and even crop dusting! As the owner and operator, Madsen comes from five generations of farming and knows the community and family it takes to make a farm run. The Madsen farm has nearly 34,000 acres. They grow sunflowers, milo, winter wheat, alfalfa, and millet. They also operate a feed store, gravel pit, and pellet mill. Most of their crop is used for pet food! As a farming company, they have a wide variety of equipment needs, including 20 tractors, 10 combines, and nearly 30 semi-trucks. During spring planting season, nearly every piece of equipment is in use, so Madsen relies heavily on keeping his equipment in good working order. He says, “We use Delo 400 SDE 15 W-40 in everything. Everything uses one oil, and that is Delo. In the past, we’ve used other oils, and our machinery would need to be topped up all the time. When we do an oil change, we see that our engine, our main bearings are all clean. We just don’t have trouble with it at all.”

Harlow’s Bus and Trucking: General Manager Jerry Schaff runs the fleet for Harlow’s Bus and Trucking based in Bismarck, ND. They are a multifaceted business. They act as school bus contractors, run a motorcoach division that offers high-end tours across the country, and operate a bus and commercial dealership. One of the biggest challenges they face is operating in freezing winter temperatures. When Schaff was considering switching to Delo products, he used their fleet to test how the oil would perform in cold temperatures. He said, “We did some research – I like analytics – and I was very impressed. Delo 400 XSP 5W-40 is one of the few oils that is good for extreme cold weather and extreme heat. [It has now] become my oil of choice. It’s what I use on my own fleet and what I recommend to my customers both as a dealer and in our maintenance shops.”

Many of our customers are businesses just like these. They have a wide variety of lubricant needs, and they’ve found that DELO® products are always up to the task. As a Chevron Lubricant supplier, we know that their products are superior and will keep your equipment in good working order. If you’re ready to make the switch and try some DELO® products, call our order team today!

Newer is better (when it’s DELO XLE 10w30)

As a fleet manager, you know that things are constantly changing, which can be hard to manage. New engine technologies come and go, oil and lubricants change, and government regulations are constantly in flux. These are just a few of the things you have to stay on top of, besides running a fleet of trucks!

It’s a lot, and many managers let researching new oils and lubricants fall to the bottom of the priority list. They stick with the products they know because it’s easier. But that type of thinking can cost your company more money and lead to more equipment downtime. If you’re still using your same old CJ-4 oils, it’s time for an update!

In 2016, the API published new diesel oil service categories, establishing a new subsection, CK-4 oils. These oils provide better oxidation stability, aeration resistance, and shear stability. Overall, they offer better protection for diesel engines and improved fuel economy. Oils in this category are designed for smaller engine sizes, variable valve timing, new combustion designs, and improved start/stop technology.

One of the key benefits of using CK-4 oils is that they meet the needs of newer and older engines. CJ-4 oils are still recommended but only up to 2010 model year engines. CK-4 oils are specifically designed for new engine technology to decrease equipment downtime, primarily by extending service intervals.

The most popular CK-4 oil we promote is the DELO 400 XLE SAE 10w30. This oil features Chevron’s ISOSYN advanced technology. It’s great for improved fuel economy, better low-temperature pumpability, and increased deposit control. But the best thing about this oil is that it provides exceptional lubrication and protection for your engine, which allows you to extend drain intervals. Here are a few of the ways it does this.

  • Increased deposit control. Newer engines burn hotter and faster, leading to increased carbon deposits, especially on pistons and in the turbocharger components. The detergent and dispersant additives in DELO 400 oil provide exceptional cleaning and protection.
  • Reduced operating costs. Many of our customers who use DELO 400 spend less time and money on repairs and equipment downtime. DELO 400 provides great protection against corrosion and soot build-up on cylinders, pistons, rings, and valves.
  • Increased Emission Control. We know that Diesel Particulate Filters (DPF) can be the bane of a fleet manager’s job. They wear out quickly, and cleaning them isn’t easy. DELO 400 is an excellent lubricant choice to reduce particulates in your engine and can help keep your DPF filter cleaner longer!

As a fuel and lubricant supplier, we know that quality products make all the difference. We’ve recommended DELO 400 to our customers for years because we’ve seen how well it works. Don’t believe us? Here’s a snippet of a testimonial from a Chevron customer about using DELO 400.

Brenny Transportation is a trucking company based out of St. Joseph, Minnesota. They specialize in long-haul routes. Their maintenance manager, Scott Simon, has been with the company for 20 years, and they boast an 86% driver retention rate. Some of their drivers have been with the company for 15 years or more. Simon attributes their retention rate to their company culture and their impeccable truck maintenance and care. As a company, they focus on running high-end trucks that are well maintained. They keep most of their trucks running for up to one million miles before trading them in. Top maintenance and care are always a priority, and they change the oil every 18,000 miles.

Brenny Transportation recently made the switch to DELO 400, and it’s been a game-changer. “We made the switch for the potential of added fuel mileage and easier starting with the colder pour point,” said Simon. Since we started using DELO products, “we’ve never had a motor come apart or fail because of our oil.” Now that they use DELO 400, they see even more advantages: “DELO 400 has proven itself to us. We had one truck that we traded off with over a million miles on it, and it never had any oil problems. We know that DELO gives us an advantage.”

Brenny Transportation found the reliability and stability they wanted. They knew they could trust their trucks to start in cold weather and handle the long distances they need to go. We know that other customers who have switched to DELO 400 have seen these benefits and more, including less maintenance time and increased fuel economy. If you are considering making the switch, use this fuel economy calculator. Chevron’s tool allows you to calculate the average fuel savings you could get from switching to DELO products.

As a fleet manager, we know what your worst nightmare is. It’s a call from a driver, stuck on the side of a highway with a broken-down truck, hours away from help. It’s the call from an angry customer whose shipment will now be late because of the truck breakdown and is now considering switching carriers.

Our goal is to help you avoid these calls and situations. When you switch to using superior quality products like DELO 400, you can trust that your truck engines are protected, and your deliveries will get to their destination on time. If you want that peace of mind, call us today, and let’s talk about how we can help you get started with DELO products!

Inflation Hotter Than Expected as Consumer Prices Surge

As I’m sure you are all aware, U.S. consumer prices surge as we see increased prices for just about everything. In fact, U.S. consumer prices climbed in April by the most we’ve since 2009, outpacing estimates and escalating the debate about how long inflationary pressures will last.

The consumer price index increased 0.8% from the prior month, reflecting gains in nearly every major category and a sign that growing demand is giving companies the freedom to pass on higher costs. In addition, the gain in the overall CPI was twice as much as the highest projection, causing forecasters to struggle as they try to get a handle on the rapidly reopening economy.

Prices for motor vehicles, transportation services and hotels visits showed sharp price increases as businesses that were hit the hardest by the pandemic reopen as vaccinated people begin to travel and resume social activities.

According to Michael Gapen, chief U.S. economist at Barclays Plc., “Transitory pandemic influences clearly contributed to the surprise but there’s residual firmness in core inflation that’s hard to ignore,” and aside from the reopening effect, “there was still some residual firmness that suggests risks around inflation in the near term are still skewed to the upside.”

Although distorted in comparison to the pandemic depressed index in April 2020, the annual CPI was up to 4.2%, the highest since 2008. This phenomenon – known as the base effect – will likely skew future figures and muddle the ongoing inflation debate.

At the same time, annualized inflation over the past three and six months has shown clear acceleration. While Fed officials and economists acknowledge the temporary boost, its unclear whether a more durable pickup in inflationary pressures is underway against climbing commodities costs, trillions of dollars in government economic stimulus and emerging signs of higher labor costs.

A recent report shows insight into price pressures across parts of the economy. Wages have shown signs of picking up, and supply chain challenges have elongated delivery times and driven material prices higher. While this is challenging for producers, swelling consumer demand has given companies more confidence and the freedom to pass along some of the new costs. If sustained, the production bottlenecks could post a risk of an acceleration in consumer inflation.

As we continue to experience the effects of reopening our economy, its important to keep a close eye on inflation and the upward pressure we’re seeing on pricing.

Click here for more details on the reopening effect, and how its effecting our economy.

Lubricant Price Increases Continue

Five lubricant price increases in the first five months of 2021. This is unheard of. You may wonder “what is going and why is this happening?” Let us try to help you better understand the drivers behind the rising costs of finished lubricants.

Previously, most lubricant price increase announcements attribute rising prices to the higher cost of raw materials. Some even citing rising costs of base oils, additives, packaging, and other inputs.

At a quick glance, that is what seems to be the cause in yet another price increase. However, as we are on the fifth increase of the year, its important to take a closer look and justify the reasons behind these price increases.

First, to understand the explanations for the rising costs, it’s important to know the components that make up a finished lubricant product. A finished lubricant product is made up of base oils, additives, packaging, and other components (such as import duties, freight, and manufacturing costs).

Unfortunately, there has been an upward trend in all cost components, especially in the second half of 2020. However, the main driver behind the lubricant price increases is the higher cost of base oil. As you may be aware, changes in base oil prices can have a significant impact on the cost of goods sold in the lubricants business. Unfortunately, base oil prices continue to rise driven by extremely limited supply against healthy demand, reduced refinery run rates, soaring spot prices and firm crude oil and feedstock values. Click here for full details of the US Base Oil Price Report.

In addition, the cost of additives also has a significant impact on the cost of manufactured goods. Typically, we see one additive increase per year; but have already seen one round of additive increases late December/early January 2021 and another in the latter part of March. Both increases were approximately 8% and contributed to the rising cost of finished lubricants. Many blenders have also been challenged to secure supply of PCMO, HDEO and THF additives.

But what does “other components or inputs” even mean? Do they matter? The answer is yes.

Some of the increases in the rising cost of “other components or inputs” include:

  • Jug prices up $0.10 in 2021.
  • Pail prices increased by $0.25 two weeks ago and up close to $0.45 a pail since the Q4 2020.
  • New one-way totes are up $15 to $20 since the start of the year.
  • New drum prices up from $25 to over 40 in just over 6 months, and they are challenging to source.
  • Pallet prices hit record highs in 2021 and supply is struggling to keep pace with demand. Marketers report pallet prices are up close to 50% year to date.
  • Freight costs are up 30 to 40% over last year and it’s very difficult to secure bulk truck carriers.
  • Shortage of CDL drivers continues to push wages up and availability of drivers down.

In addition to higher costs in these areas, blenders and marketers are seeing higher costs for insurance, maintenance, wages, fuel, and others.

Please click here to see more detailed documentation on the reasons behind the five lubricant price increases in the last five months.

Greg’s Petroleum Service continues to work hard to control costs and deliver quality products and valuable service at competitive prices. Unfortunately, we must advise all customers and our community that the industry will be experiencing prices increases and they will affect all brands throughout the industry.

We regret having to pass this increase on to you. As a valued customer, please know we have only increased our lubricant pries due to the direct supplier increases we have received. We greatly appreciate your continued business and partnership. For questions on this price increase, please contact your Greg’s Petroleum Service sales rep today.