As wholesale motor oil prices rise rapidly, some industry experts warn of imminent shortages caused by the war in Iran.
The issues are due to damage to key facilities in the Middle East and the shutdown of the Strait of Hormuz.
The risk is that some of the most popular kinds of motor oil will be in very short supply, forcing drivers to delay getting their oil changed or rely on suboptimal lubricants.
Independent Lubricant Manufacturers Association CEO, Holly Alfano, said she has no doubt in her mind that we’re looking at shortages.
“It’s a big mess — and it’s not going to be resolved quickly. It could take a year or so before we see any real relief,” she told CNN.
In a normal year, motor oil producers would increase prices for distributors by 70 to 80 cents a gallon. But already this year, Glenn said, some producers have lifted prices on distributors buying in bulk by $5 or more a gallon.
Petroleum Trends International president and CEO Tom Glenn said he hasn’t seen price increases like this since 1979.
“Three rounds of price increases over two and a half months is unheard of. And the magnitude is stunning,” he said.
This has been driven by a combination of higher prices for crude oil, base oils, additives, transportation, packaging and logistics.
Not only are prices rising, but ILMA warns of an “imminent shortage” of low viscosity grade oils, including 0W-16, 0W-8 and 0W-20, which is the most important grade of motor oil on the market today.
