Fuel prices going up - lube oils sure to follow...

[Gary - K7GLD]

Guys, the ever climbing fuel price is sure to be with us permanantly - and while lube oil consumption is a less costly expense per mile, that dino-based item is sure to climb as well, and HAS in some instances.



Dunno about others, but I "invested" in 3 cases of Delo 400 - enough to last me for at least a couple of years at current consumption rate. Neat thing was, local drug store had the Delo on sale for $5. 59 a gallon - cheaper than Walmart where I usually buy the stuff - so I bought 2 cases.



Same theory applies to other lubes and additives - they're ALL bound to follow fuel prices...

 

[RustyJC]

Same theory applies to other lubes and additives - they're ALL bound to follow fuel prices...

Proportionately, the cost of crude oil is a significantly smaller component in lubricating oil than in fuel. To illustrate, if crude oil were $25/bbl, then the crude oil cost per quart of lube oil would be $25/(42x4), or $0. 15/quart. Assuming the oil sold for $1. 50/quart, crude oil cost makes up 10% of the selling price. Now, with crude oil at $55/bbl, the crude oil cost per quart of lube oil is $55/(42x4), or $0. 33/quart, or 22% of the selling price.



Conversely, let's say diesel fuel is selling at $2. 00/gallon. At $25/bbl, the crude oil price makes up $25/42, or $0. 60/gallon - 30% of the selling price of $2. 00/gallon diesel fuel. Now, with $55/bbl oil, crude oil makes up $55/42, or $1. 31/gallon - 66% of the selling price of $2. 00/gallon diesel fuel.



Therefore, crude oil price swings will have much greater impact on diesel fuel prices than on lubricating oil prices.



Rusty

 

[Gary - K7GLD]

"Therefore, crude oil price swings will have much greater impact on diesel fuel prices than on lubricating oil prices. "



Hope you're right - but at least at Walmarts I've been to recently, Power Service and Delo have gone up nearly 10%, as has the Pennzoil synthetic 2-stroke oil I also add to my fuel. Not as much increase as fuel - but the game's not over yet...

 

[Driftwood Ram]

Proportionately, the cost of crude oil is a significantly smaller component in lubricating oil than in fuel. To illustrate, if crude oil were $25/bbl, then the crude oil cost per quart of lube oil would be $25/(42x4), or $0. 15/quart. Assuming the oil sold for $1. 50/quart, crude oil cost makes up 10% of the selling price. Now, with crude oil at $55/bbl, the crude oil cost per quart of lube oil is $55/(42x4), or $0. 33/quart, or 22% of the selling price.



Conversely, let's say diesel fuel is selling at $2. 00/gallon. At $25/bbl, the crude oil price makes up $25/42, or $0. 60/gallon - 30% of the selling price of $2. 00/gallon diesel fuel. Now, with $55/bbl oil, crude oil makes up $55/42, or $1. 31/gallon - 66% of the selling price of $2. 00/gallon diesel fuel.



Therefore, crude oil price swings will have much greater impact on diesel fuel prices than on lubricating oil prices.



Rusty

So where do you find fuel for "only" $2. 00 per gallon. $2. 69 up here

 

[RustyJC]

I filled up for $1. 899 last week. It's up to $1. 989 or so around the house here since then.



Rusty

 

[RKrueger]

It's 2. 26/gal in western NY, and I'm glad now that I installed my Filtration Solutions bypass filter 2 years ago. It's been terrific and now that oil prices are going up, it's value just went up a little.



Robert