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Information about Central Oil Supply and all of its divisions.

Prevent Sludge and Plugging Issues while Optimizing Engine Performance

Jennie McRae - Tuesday, February 04, 2020

Prevent Sludge and Plugging Issues while Optimizing Engine Performance

Ultra low sulfur diesel (ULSD) is better for emissions; however, less sulfur can result in maintenance issues in fuel systems and tanks. The engineering used to formulate ULSD strips away beneficial lubricity; this can cause fuel system wear and lead to clogged injectors and filters. Additionally, ULSD is more likely to retain moisture, putting fuel and tanks at risk of bacteria contamination.

When left untreated, it doesn’t take long for fuel system issues to hurt engine performance and fuel economy. And in winter months, this is an even larger concern.

Central Oil carries Schaeffer's fuel additives, which are highly effective at dispersing injector clogging and plugging while preventing new deposits from forming. This powerful keep-clean performance means longer component life, better fuel economy, less fuel blow-by and restored horsepower.

Central Oil carries: DieselTreat 2000, Neutra Fuel Stabilizer, and SoyUltra Gasoline Additive. Each of these products increases lubricity protection, reduces gelling, increases cold weather performance, and provides consistent fuel quality, while reducing emissions.

To determine which product is right for you, please call us at 318.388.2602 to speak with an expert today.


2020 Price Increase Announcements

Jennie McRae - Tuesday, February 04, 2020

Price Increase Roundup (via JobbersWorld)


Smitty's Supply 

Announced a price increase on all lubricating oil, fluids, greases and automotive chemicals of up to 12% effective February 24, 2020. The increase is said to be due to increased cost of base oils associated with the manufacturing of its products. 

 

PennStar, LLC

Announced a general price increase of between 10 to 12%, depending on product class. The increase is effective February 24, 2020. PennStar advised its customers the adjustment is driven by the continuing rise in the price of base oils. 

 

Chemlube International

Effective February 13, 2020, it will increase the price of its lubricant products in the range of 7 to 12%; varying somewhat by product. The adjustment is said to be necessary due to significant increases in the costs of the raw materials used in the manufacturing of its lubricants. 

 

Warren Oil Company

Notified its customer there will be up to a $0.30 a gallon price increase on its finished lubricants, and up to a $0.04 a pound increase on greases effective February 18, 2020. Warren Oil also attributes the need for the increase to increases in the cost of  raw materials. 

 

ExxonMobil

Announced it will increase the price of its lubricants in the US market by up to 12%. The increase is effective February 24, 2020.

 

SOPUS/Pennzoil-Quaker State advised its marketers of a price increase of up to 12%, effective February 24, 2020. The increase is said to be due, in part, to increased cost of raw materials used in production and delivery of its products.

 

CAM2 International, LLC 

January 24, 2020

Announced a price increase of up to 12% on bulk and packaged lubricants, greases, and automotive chemical products effective February 24, 2020. CAM2 advised its customers that the increase is due to the recent increases in the price of base oils.

 

Chevron (Canada)

January 24, 2020 

Announced a general price increase in the Canada market on lubricating oils and greases up to 12%. The increase is effective March 2, 2020.

 

RelaDyne 

January 23, 2020

Announced a general increase of 12%. Certain products, including synthetics, may fall outside of the general 12% increase. The increase is effective on order placed after February 24, 2020.

 

Old World Industries 

January 22, 2020

Announced a price increase of up to 12% on all finished lubricants effective February 21, 2020. The increase is said to be due to increased cost of raw materials and logistics that have been passed on to Old World. 

 

Nu-Tier Brands / Gulf Lubricants 

Announced a general price increase of 10% to 12% effective February 20, 2020 on all finished lubricants. The increase is said to be necessary due to rising costs associated with raw materials and manufacturing. 

 

Petro-Canada 

Announced on January 17th there will be a $0.33 a gallon price increase across the board for all Purity FG WO White Mineral OiI and a $0.30 a gallon increase for its Paraflex HT Process Oils, except HT 100 which will increase by $0.25 a gallon. These increases are effective on February 17, 2020. 

 

Chevron (U.S.) 

January 16, 2020

Chevron advised its marketers in the US that the company will increase the price on all lubricating oils and grease in the US by up to 12%. The increase is effective February 24, 2020.

 

Sinclair 

January 16, 2020

Due to increasing costs of raw materials, Sinclair Lubricants announced it will be implementing a price increase of up to 10% to 12% on finished lubricant products effective March 1st, 2020. 

 

AOCUSA/AMALIE  

January 14, 2020 

AOCUSA/AMALIE announced an across the board price increase for all oil and automotive chemical products, as well as all private labeled products. The increase will move all of its oil prices up by $0.32 a gallon effective February 13, 2020. The price for the company's grease products and automotive chemicals will increase by $0.04 a pound on the same day. There will, however, be no increase for antifreeze and brake fluid products. Amalie attributes the need for the increase to the higher cost of additives, base oils, corrugated and transportation it has absorbed over the last few months. 

 

TOTAL Specialties USA  

January 3, 2020 

TOTAL advised it US customers that it will be increasing its lubricant prices on February 3, 2020. The increase will move its Navastane prices up in the range of $0.40 a gallon, Quartz 9000, INEO & Racing up $0.25 a gallon, grease up by $0.06 a pound and all other products by $0.15 a gallon. TOTAL says the increases are a result of continued escalation of logistics, taxes on imports, and the costs of some raw materials.

Fuel Risk Management: What it is, and Why it May be a Game-changer for You

Jennie McRae - Tuesday, February 04, 2020

What is Fuel Risk Management?


Fuel hedging is a contractual tool some large fuel consuming companies, such as airlines, cruise lines and trucking companies, use to reduce their exposure to volatile and potentially rising fuel costs. A fuel hedge contract is a futures contract that allows a fuel-consuming company to establish a fixed or capped cost. The companies enter into hedging contracts to mitigate their exposure to future fuel prices that may be higher than current prices and/or to establish a known fuel cost for budgeting purposes. If such a company buys a fuel swap and the price of fuel declines, the company will effectively be forced to pay an above-market rate for fuel. If the company buys a fuel call option and the price of fuel increases, the company will receive a return on the option that offsets their actual cost of fuel. If the company buys a fuel call option, which requires an upfront premium cost, much like insurance, and the price of fuel decreases, the company will not receive a return on the option but they will benefit from buying fuel at the then-lower cost.

Why Hedge?

Hedges are particularly popular with companies that have exposure to certain markets, such as commodities or interest rates. For instance, airlines and railroads spend substantial amounts for fuel for their operations, and so hedging future fuel costs can protect them against a spike in the market price for energy products.

Oil and gas exploration and production companies provide a useful example of this use of hedging, as some players in the oil-rich shale plays like the Bakken and Eagle Ford hedged their anticipated future production and therefore earned huge gains on their hedge positions because of the plunge in oil prices on the open market during late 2014 and 2015. Those companies that didn't hedge, on the other hand, face the full impact of the crude oil drop, and some are struggling to get the capital they need to keep operating.

If you purchase bulk fuel, pre-booking your fuel may be something to strongly consider. Firstly, this program can help you minimize your exposure to the volatile fuel market; secondly, this program can help you establish an estimated fuel cost for the upcoming year. And ultimately, you will be better able to manage your operating costs when you use this program to budget fuel expenditure. Simply put, with Fuel Risk Management, you are guaranteed a budgeting tool that is a lifesaver for some of our customers; some of them even see savings as a result of pre-booking their fuel with Central Oil.

If you don’t know where to start, we recommend you booking 50-75% of your anticipated usage.


Fuel Risk Management FAQ:

  • What types of fuel can be booked?

Clear On-Road Diesel/Dyed Off-Road Diesel/Jet-A


  • How big is a transport load?

7,000 Gallons


  • How long do I have to take the delivery?

You will have an entire month to take the load you have booked


  • How much should I book?

We recommend booking 50% -- 75% of your anticipated usage


  • When is the deposit due?

Deposit is due at the time of contract execution


  • When can I book?

We encourage customers to use our FRM Program as a budgeting tool (before their fiscal year-end). However, you can book at any time of the year!


  • How many types of contracts are there?

Fixed Forward

Collar Option

Max Price


(fool.com; Wikipedia.com)




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