The situation in the Middle East remains highly volatile, which is naturally creating questions and speculation. We want to keep you informed and we will continue communicating with you on a regular basis until the situation is resolved.
Uncertainty persists across the lubricants industry and there is continued pressure on raw-material supply chains and costs. While we have not yet fully recovered the cost increases resulting from this disruption, the pace of supplier price increases has slowed in recent weeks. As a result, we have no immediate plans to implement a price adjustment.
It’s important to remember that pricing activity varies across the market based on factors such as company structure, product mix and geography. You and your customers buy directly from us, which makes any pricing changes immediate. Many competitors sell through multiple layers of distribution (manufacturer→distributor→retailer→end user), meaning price increases can take longer to reach end users. Across the industry, however, costs remain elevated and marketwide pricing pressure continues.
We will continue aggressively managing costs throughout our operations and supply chain while maintaining the performance standards you expect from AMSOIL without compromise.
While raw-material availability remains tight across the industry, we continue to have product available and ready to ship thanks to proactive supply-chain management. Our priority remains supporting your business with the products you need when you need them. This recent article from “Jobbers World” does a great job of explaining the current situation and what to expect in the months ahead: Why Crude Volatility Complicates Lubricant Pricing – JobbersWorld.
Thank you for your continued partnership and business.