WHY IS MOTOR OIL GETTING SO EXPENSIVE?
If you’ve noticed the price of motor oil, gasoline and diesel going up, you’re not imagining it.
Costco recently increased the price of its popular Kirkland Signature full-synthetic motor oil from around $30 last year for a 5-quart two-pack to approximately $58. Some motor oils are also being sold with purchase limits.
WHAT'S DRIVING THE PRICE?
Modern synthetic motor oils rely heavily on Group III base oils, which are produced from crude oil.
As crude oil prices rise, so does the cost of products made from it. Brent crude has climbed from less than $72 per barrel in early July to more than $109 per barrel, putting pressure on the entire petroleum supply chain.
There’s another factor that could affect motor oil prices: supply and demand.
Gasoline and diesel have dramatically higher worldwide demand than motor oil. When crude oil is expensive and supplies are tight, refiners have more incentive to focus on products with the greatest demand.
That could mean less production of motor-oil base stocks, potentially putting additional pressure on motor oil prices and availability.
WHAT ACTUALLY GOES INTO THE COST OF AN OIL CHANGE?
There are four basic components:
1. MOTOR OIL — The oil itself is typically the biggest expense, especially with today's full-synthetic oils.
2. OIL FILTER — Your vehicle needs the correct filter to remove contaminants and protect the engine.
3. OIL DISPOSAL — The old oil has to be collected, handled and properly recycled or disposed of.
4. LABOR — Someone has to perform the service, inspect the vehicle and make sure everything is done correctly.
Of these four components, the oil is typically the largest cost. So when the price of motor oil goes up, the cost of an oil change is naturally affected.
AND IT'S NOT JUST MOTOR OIL
According to AAA, the national average price of regular gasoline has risen to about $4.32 per gallon, compared with $4.08 a month ago and $3.18 a year ago.
Diesel has climbed even faster, recently breaking $6 per gallon nationwide. The average reached approximately $6.23 per gallon, up from $5.90 just one week earlier.
WHAT DOES THIS MEAN FOR YOU?
The cost of keeping your vehicle on the road is being driven up by rising prices throughout the petroleum supply chain.
At Central Park Auto, we'll use high-quality oil that meets your vehicle manufacturer's specifications, along with the correct oil filter. We purchase our oil in bulk, which helps us keep our costs down. And as oil prices continue to rise, we're passing our cost savings along to you rather than adding to the price of the oil for extra profit. We believe in keeping our pricing fair and being upfront about what you're paying for.
And our technicians? Years of hands-on experience, real-world knowledge and professional training. We believe your car should be serviced by experienced technicians — not someone learning on your vehicle.
No crawling under your car. No cleanup. No guessing about what your vehicle needs.
Need an oil change or vehicle service? Let us take care of it.
Central Park Auto
303-321-8880
