A general market price increase is on the horizon for all petroleum products due to the increasing cost of raw materials impacting the manufacturing and refinement of our products. This is primarily due to the changes in federal regulations of marine fuel to reduce emissions. Until recently, many vessels were using close to 80 million gallons of recycled oil. Effective January 1, 2020, the International Maritime Organization imposed a regulation to reduce sulfur limits in marine fuel from 3.5% to 0.5%. The shipping industry has turned to ultra-low sulfur diesel to meet this new requirement.
How does overseas transportation affect land locked businesses?
Refineries are forced to keep up with this sudden increase in demand for ULSDD. This has shifted production from lubricant based products to diesel. To learn more details about this issue and what the future hold for lubricant pricing, click here.
Along with the changes of the federal regulations, base oils have increased 30 cents per gallon after about eight months of unchanged postings. Motiva communicated first the increase on their base oil on January 13th, which was quickly followed by Chevron, Excel Paralubes, and Calumet. “Lubes’N’Greases” explains the US Base Oil Report best in this article.
Due to this general market increase and the rise of the raw materials, we will be increasing our pricing in the upcoming months. Please reach out to your Parman Energy account manager for specifics and to place you order to stock up prior to this increase. Parman Energy Group will remain committed to providing you with Totally Outrageous Customer Service. We greatly appreciated your continued business and loyalty.