posted on Dec, 12 2015 @ 06:18 AM
The cost of crude oil is a small percentage of costs of goods that a company has to pay in order to develop market competitive motor oils.
We take years to develop a motor oil. Paying very clever chemists to develop new oils. We have just launched a very high end motor oil system but it
took years to create.
We have to create additives, then pay a company to produce them, as well as buy the basic additives off them. We contract out plants to create all
our products, we don't own any of them. Then you have import and export taxes, shipping costs, warehousing, HGV vehicle transportation all contracted
out to companies. Pallets, packaging, the production of labels, translating these across all languages.
Just because it is oil, and SAE are over producing although Brent is doing marginally better. Doesn't mean Oil companies don't have the same costs as
producing orange juice, or any other commodity.
Of course you have competitors that under cut you, but as a consumer you have a choice to but bargain oil in or go slightly higher. The joys of a free
What we should be moaning about is the cost of Milk and the shocking prices supermarkets pay per litre to farmers as they run it as a loss leader.
Just FYI I work for Castrol, I understand, a premium motor oil. A Gallon of Magnatec 5W-30 Fully Synthetic costs £30, but I personally wouldn't put
anything else in my car.