Crude prices are way down. Why hasn't engine oil dropped accordingly?

[Beau-Kat]

OK gurus.

Crude oil prices are way, way down.

Gasoline and diesel prices have dropped dramatically since last year.

So, why hasn't dino engine oil dropped accordingly?

I'm not talking about synthetic stuff.

[cowpuc]

Good point!! Maybe those products dont have the consumer watch group keeping as close of an eye on them for gouging that the fuel sellers do .. Makes no sense does it..

[djh3]

Diesel takes less refining than gasoline. So why is it more?

Because they can. Maybe thats how Exon and them are making up some of the slack from low gas prices.

[Beau-Kat]

Just wondering because a few times in this month, diesel actually dropped a few cents below regular unleaded here (usually around $1.62 diesel/$1.67 regular). So I was wondering how about motor oils.

The last time I saw diesel below gas was way back in 1980.

That March I bought a 1980 VW Rabbit Diesel (slowest steeenkin' car ever!) and diesel promptly went to $1.05/gal vs regular gas at $1.00/gal. I had heard gas was going to 2 bucks a gallon and I had a 1966 F100 with 340 k miles on it. It got crappy mileage and could drop dead at anytime.

I had started my career in 1977, still wasn't making a whole lotta moolah, but was starting my nightly commutes to college too. I had worked hard and saved a little money and needed something dependable and inexpensive to operate. So, I bought my first new car, this VW.

And they jacked up diesel a whole nickel over gas (which took a very, very long time to reach $2/gal.).

Oh, the nerve!

[MiCarl]

I'm under the impression that diesel has much higher taxes than gasoline.

 

As far as engine oil goes I suspect that the cost of the crude oil to make it is a very small part of the retail price.

[BlueSky]

Another question is why are the giant auto parts store chains so much higher than Walmart on engine oil?

 

A guy on a truck forum I participate in who works in an oil company lab tells us we are wasting our money buying synthetic oil.

[saddlebum]

Another question is why are the giant auto parts store chains so much higher than Walmart on engine oil?

 

A guy on a truck forum I participate in who works in an oil company lab tells us we are wasting our money buying synthetic oil.

I was told years ago when I was just a teenager by a friend of my fathers who was a lab tech for shell research that oil never wears out but only gets dirty and looses additives. Back when we used to change oil filters every second oil change he would say we had it backwards that we should be changing filters at regular intervalss and oil every second or or third filter change. I have never been one to change oil regularly once or twice a year and changed oil filters every other month and never lost an engine getting over 200,000 miles.out most of them. Also I tried syn oil in my bike and did not like the way the engine had more mechanicals noises. So zwitched back to dino oil.

My brother who works for an oil.company says with today's technology in oil refining, oil is even better tha it was then.

 

As far.as.diesel goes, it too has higher costs because they now have to get the sulpher out of the fuel and other impurities due to modern emissions standards. Just saying not justifing anything.

Edited December 22, 2015 by saddlebum

[Condor]

OK gurus.

Crude oil prices are way, way down.

Gasoline and diesel prices have dropped dramatically since last year.

So, why hasn't dino engine oil dropped accordingly?

I'm not talking about synthetic stuff.

 

It's because oil sells slower than gas or diesel. The stuff on the shelves of major auto supply houses and the stuff in the warehouses were stocked with the higher priced oil. Since the sales are not as great as fuel the price will drop slower than those at the pump.

 

Good point!! Maybe those products dont have the consumer watch group keeping as close of an eye on them for gouging that the fuel sellers do .. Makes no sense does it..

 

They're not gouging. Just trying to get their investment back. Give it some time. Oil will also get very cheap.

 

Diesel takes less refining than gasoline. So why is it more?

Because they can. Maybe thats how Exon and them are making up some of the slack from low gas prices.

 

Actually the cost of refining diesel is the same as gas. When the refinery cracks crude, it all comes out of the same tower. The top is gas, a little lower is lighter oils like kerosene, and it gets heavier as it syphoned off, Diesel is about mid tower. Cold tar products are at the bottom.

 

And they jacked up diesel a whole nickel over gas (which took a very, very long time to reach $2/gal.).

Oh, the nerve!

 

We used to buy diesel for $.26 a gallon back in the day. Same thing for gas in the cabin cruiser....

 

I'm under the impression that diesel has much higher taxes than gasoline.

 

As far as engine oil goes I suspect that the cost of the crude oil to make it is a very small part of the retail price.

 

You're right. The cost of production plays a big part in the retail price. 20 years ago when crude sold for $50 a bbl, gas prices were below a dollar per gallon. Now we're amazed when it breaks the $2 barrier....

 

Another question is why are the giant auto parts store chains so much higher than Walmart on engine oil?

 

A guy on a truck forum I participate in who works in an oil company lab tells us we are wasting our money buying synthetic oil.

 

Walmart is so much bigger they buy products by the train load, not the car load. It's called purchasing power....

[BlueSky]

Looking back on what I observed, diesel fuel was cheaper than gas when it was only available at the truck stops and the large trucks were about the only ones using it. I'm sure that distribution costs went way up when they started distributing diesel to most of the gas stations to accommodate pickups and cars that now have diesel engines.

 

As an afterthought, I never understood why someone would buy a diesel Mercedes car. Spend all that money for a super nice car and select a noisy, smelly, smoky engine just to save a few bucks on fuel.

[BlueSky]

 

 

Walmart is so much bigger they buy products by the train load, not the car load. It's called purchasing power....

 

These auto parts chains like Autozone and Advance Auto are pretty big too and probably sell as much engine oil as Walmart. Probably their business model probably requires a higher margin.

[Condor]

Auto Zone and Advance Auto don't come close to Walmart......

[Pam]

We are now in the heating season, I used to haul fuel and deliver to homes as well. All heating oil is, is light diesel. So theoretically once the weather warms up the diesel price should go down, but by then the refinery will need rebuilding and then we are back to supply and demand.

[GeorgeS]

OK gurus.

Crude oil prices are way, way down.

Gasoline and diesel prices have dropped dramatically since last year.

So, why hasn't dino engine oil dropped accordingly?

I'm not talking about synthetic stuff.

 

I was thinking about price of fuel yesterday. Hmmm ?? say I --- back around 1970, a gasoline cost about 20 to 22 Cents per gallon .

Bye 1975, it was over $1.00 per gallon.

Now its going for about $2.00 to $2.50 around the country ( Except for Calif of course, more tax's there on fuel )

 

OK, I just filled the tank for $2.15 a gallon. Lets Adjust that for " Inflation " [ based on an average 1970 price per gallon ] Divide bye about 10 to 12 times to adjust for inflation.

So: $2.15 divided bye " 11 " Equals, 19.545 Cents per gallon.

 

And then--- in 1970 my cars got about 11 Miles per gallon, now they get about 19 to 20 miles per gallon. So, I only buy about 1/2 as many gallons of the stuff now.

 

So, I am now spending about 1/2 as much for my fuel as back in 1970. ( I was driving 100 miles a day to get to work back in those days, so I KNOW, )

 

And the cost of " motor oil " Remember, new synthetic oils, run 3 times or so longer then the old standard stuff. I spend a LOT less on motor oil these days.

Irregardless of the cost per quart of the stuff.

 

Bottom line: At $2.20 per gallon, I now spend 1/2 as many Inflation Adjusted dollars, to drive the same number of miles, ( In my large Chevy SUV )

 

Now, if you have a small car that gets 32 MPG, Well, do the math. But don't forget to adjust for inflation, back to the times we got out of High School ??? Whenever that was

for all us Old Gezzers !!

[SilvrT]

Gasoline and diesel prices have dropped dramatically since last year.

 

Dramatically?

 

Not in my neck of the woods. Just filled the tank @ $1.25 / litre which equates to $4.73 / US gallon.

 

My truck: 2005 Chev Silverado ... from 1/4 tank it takes over $80 to fill.

[GeorgeS]

Dramatically?

 

Not in my neck of the woods. Just filled the tank @ $1.25 / litre which equates to $4.73 / US gallon.

 

My truck: 2005 Chev Silverado ... from 1/4 tank it takes over $80 to fill.

 

Well, my question would be, how much did a Litre cost in Canada, back in 1970 ?? in Canadian money.

And, what is the Inflation rate, in Canada. for 1970 to 2015? ( I know, Canada, is not same as the U.S. )

 

I think, a U.S Dollar today, is worth about 8 cents, U.S. 1970 dollars. Or, 1 dollar 1970 is only worth about 8 cents in todays U.S. Money.

I know lots of folks don't like to think about inflation !! But the sad truth is that a " Dollar " Ain't What it Used to be !! as they say.

[SilvrT]

Well, my question would be, how much did a Litre cost in Canada, back in 1970 ?? in Canadian money.

And, what is the Inflation rate, in Canada. for 1970 to 2015? ( I know, Canada, is not same as the U.S. )

 

I think, a U.S Dollar today, is worth about 8 cents, U.S. 1970 dollars. Or, 1 dollar 1970 is only worth about 8 cents in todays U.S. Money.

I know lots of folks don't like to think about inflation !! But the sad truth is that a " Dollar " Ain't What it Used to be !! as they say.

 

and neither is a penny .. coz we don't even have them any more! LOL

[BlueSky]

$1.919/gallon for my fillup yesterday at Sam's Club for 87 octane.

 

It was interesting to say the least when the Arabs boycotted the USA and wouldn't sell us oil in 1973 because of our support for Israel. At that time we were only paying $2 for a barrel of crude. Gas prices doubled overnight. People panicked and started dumping their big gas guzzlers. Gas lines at the stations that had gas to sell. This boycott spurred the guvment to create the Dept. of Energy for the purpose of getting us off foreign oil!! What a success that has been!

[SilvrT]

Well, my question would be, how much did a Litre cost in Canada, back in 1970 ??

 

The metric system was introduced in 1970 but wasn't applied to gasoline until 1979 (according to Wikipedia).

 

Near as I can tell, a gallon of gas in Canada in 1970 was just under 50 cents.

[GeorgeS]

The metric system was introduced in 1970 but wasn't applied to gasoline until 1979 (according to Wikipedia).

 

Near as I can tell, a gallon of gas in Canada in 1970 was just under 50 cents.

 

OK, now can you adjust 50 cents Canadian from 1970 to todays Inflation Adjusted equivalent ??

 

I found an Inflation Adjusted, U.S. Gasoline cost chart From 1918 to 2014. Averaged for inflation, a gallon was About $3.20 a gallon in 2014 dollars.

Even I was surprised at that. It started at about 25 cents a gallon in 1918. ( pretty hefty price back in those days !! )

[Flyinfool]

As my Father in law always used to say "Don't give me crap about the good old days, When I was a kid I had to work 2 days to fill my gas tank, now I can fill it on an hours wages".

[cowpuc]

As my Father in law always used to say "Don't give me crap about the good old days, When I was a kid I had to work 2 days to fill my gas tank, now I can fill it on an hours wages".

 

Must have been before that era of the mid 60's when siphoning hoses were invented:rotf:,, =

[Flyinfool]

Long before.............

[Zzyzx]

Gas prices jumped.10 cents overnight. WHY?????

Oh Yea, I forgot, its the California good weather convenience screw the public while having the crappiest roads in the U.S. tax.

 

And what about the prices of asphalt roofing materials.

Its now cheaper to move then replace a roof.

[BlueSky]

It's normal for gas prices to jump a little just before a holiday when more driving will take place. It's called capitalism.

[GeorgeS]

Gas prices jumped.10 cents overnight. WHY?????

Oh Yea, I forgot, its the California good weather convenience screw the public while having the crappiest roads in the U.S. tax.

 

And what about the prices of asphalt roofing materials.

Its now cheaper to move then replace a roof.

 

A new roof ?? Last couple years I been checking the cost of a new roof in the Seattle Area. My neighbors have been paying from 18 to 20K for a re-roof job !! ( Asphault shingles )

 

I have cedar shakes, I decided to do the job myself. Cost of Materials for new Cedar Shakes, and materials about 5 K. So I'm doing it myself ! Save about 15K ( approximetly )

 

Finished back half last summer, will do the front this summer.