Why have the prices gone up soooo much?

[Shawn T W.]

Howdy!

I use to use the Amsoil Series 3000 5W-30 Heavy Duty Diesel Oil in my 05 Dodge Sprinter, I knew a guy who got me some back in 06 I paid $79.61 including shipping to me in Vermont for a 2.5 gal jug. Now the retail is $102.35 not including shipping . . .

Why the big price jump? I can see higher shipping charges in the last 2 years, but . . . why has the synthetic oil gone up along with the dino oils (I understand the dino)

Shawn

[donsoil]

Greetings Shawn !
When energy costs increase it has a pebble in the pond ripple effect on everything consumers purchase. No business escapes the increased energy costs because every item they purchase, consume, or produce is directly tied to energy costs ( I.E. crude oil price ).
The factors driving up the price of Amsoil are as follows:
Transportation costs
Raw materials costs ( plastic for bottles jugs and totes, steel for drums, cardboard for boxes and grease tubes).
Base stock price increases
Additive price increases
Amsoil is a blender of oil, which means they purchase the various base stocks from companies like Exxon/Mobil, Chevron, Conoco/Phillips.
Amsoil purchases additives from companies like lubrizol,
Additives International, International petroleum products & additives company, to name a few.
As an independent oil company, Asmoil faces many uniqe challenges. The volatility of the current market impacts independent manufacturers differently than it does " Big Oil ". Recently, the independent lubricant manufacturers association (ILMA) submitted complaints to the federal trade commission ( FTC) about the pricing practices of major oil companies.
ILMA's biggest complaint lies with the major oil companies practice of raising prices for base oils to all their competitors, and delaying the subsequent price increase on their own finished lubricants by 45 ot 60 days causing a price squeeze on independent lubricant manufacturers like Amsoil.
The only conclusion that can be reached is that the " Big Oil " companies are trying to squeeze out the independents for market share.
So "Big Oil" GREED unfortunatly also drives up the price of Amsoil.
Another reason for price increases is fertilizer demand, you may wonder how that impacts the price of Amsoil, but bear with me.
The demand for Biofuels has dramatically increased the demand for the crops used in their production, which has in turn increased the demand for fertilizer.
Many chemical fertilizers are formulated with raw materials derived from the same chemicals used to produce oil additives, the supply of these raw materials simply cannot keep up with demand,which drives prices up.
Phosphorus and sulfur make up part of anti wear oil additives.
Phosphate rock prices increased from $20 per metric ton in march of 2007 to $400 per metric ton in march of 2008. That's an increase of 1,900 % in the last year. Ninty five percent of phosphate rock is used in fertilizers.
Seventy five percent of sulfur produced is used in fertilizers.
Sulfur prices went from $60 to $452 since the second quarter of 2007.
A business must make a profit to survive, when energy costs drive up the price of every item that business uses to make its final product, the final price of that product must increase to cover the increased costs or the business will not survive.
I hope this helps to shed some light on the subject.
If you would like to save money on Amsoil, let me know, I can save you 25% over the retail cost with a preferred customer or dealer account.
Thank you !
Have a great day !
Don

[Shawn T W.]

Yeah, I understand things go up . . .but I was just figuring synthetic wasn't tied to crude oil, now I can see some of it, but . . . how much of a qt of oil is "additive?" 1/4, 1/2, 1/25?

It seems to have gone up about 40%

Bought some dino the other day at the local parts store, thier brand @$4.99 qt! Napa was only $2.79, but 35 mi away!

Thanks Don for the insight.

[glenn27]

I just got around to reading my latest Amsoil mailer w/the latest price catalog--and I knew (had heard elsewhere about a 15-20% price increase back in August)--I should have stocked up then--(make a note to kick- self here).....
Transportation is their biggest cost, I think--next to raw materials.

The thing I don't agree with is their Qt. vs. Gallion priceing--only a dollar difference....should be more difference for the gals--vs. the extra plastic/packageing/labeling/handling of 4-qt. bottle to get the same end results.
I have sent a letter voicing my concerns to Amsoil.
Thanks--Don for your concise answers......

[donsoil]

Greetings !
Something to consider in spite of Amsoil price increases, is the value and cost effectiveness that Amsoil lubricants and filtration offers you.
Most Americans change engine oil at 3,000 miles, if they drive 15,000 miles a year that's 5 oil changes per year.
One oil change per year with Amsoil synthetic engine oil and Amsoil EaO synthetic media oil filter will significantly reduce wear and increase fuel mileage by 3 to 5%.
Do the math, Amsoil is the low cost alternative to America's mideast oil "Problem" !

If anyone would like to see how to greatly reduce maintenance costs, and extend equipment life and performance check this out:
www.millionmilechevy.com

Please let me know how I may be of service !
Have a great day !
Don

[es_bob]

I've been using amsoil for a while now, in my two cars and my snowmobiles. That link with the Chevy is pretty neat.

[donsoil]

I would love to see a cost of maintenance comparison between Amsoil used for 1 million miles, versus petroleum based oil for however long it allows the
components to live.
Another Item worth noting,this fellow mentions in his website at around 600,000 miles he overheated the engine, and it still went another 300,000 + miles.
Amsoil synthetic isn't expensive, its priceless !

Switch to Amsoil and change your thinking, not your oil.
I can help you make the change from the middle east oil problem, to the Amsoil solution.:thThumbsU
Have a great day !
Don

[Kbeitz]

I change my oil to remove the dirt... Not because the oil is bad...
I'll stick with dino oil and change every 3000 miles...

[donsoil]

Greetings !
I couldn't agree with you more ! Dirt is THE biggest enemy of an engine.
Amsoil realized several decades ago that you can have the best lubricant in the world, but if you don't stop the dirt you really haven't accomplished much.
That's the main reason Amsoil couples cutting edge air and oil filtration technology with the best synthetic lubricants money can buy.
The million mile chevy website shows the results of nearly 900,000 miles of 25,000 mile oil and filter changes.
All the critical area's of engine wear are within 1% of brand new specification.
I believe most would agree this is a fairly clear example of Amsoil's superior dirt/ wear stopping technology.
If anyone wishes to research Amsoil's cutting edge oil and filtration technology, check out my website, or if you would like a million mile chevy testimonial brochure, please let me know.
Thank you !
Have a great day !
Don:thThumbsU