Why is motor oil so expensive?

[Troy]

Several years ago when gas prices went through the roof the price of a quart of motor oil followed suit. Now gas is selling for just a little above what it was before but a quart of oil is still almost $7. Of course, full synthetic used to be $11-12 per quart and now it's $6-7. Did they just "normalize" dino oil prices because people are clueless? O'Reilly had a closeout sale on Castrol VR-1 full synthetic several years ago and I bought all I could find. I'm just now running out! The only oil I have purchased since then is the Pennzoil 0 weight for the Scat Pack and I'm surprised that the plain Jane oil for my daily drivers is almost as expensive.

On a related note... remember when each "grade" of gas was $0.10 more expensive as you went up? It's as if the additives cost a whole lot more than the gas itself...

Troy

[lukedukem]

I also remember when diesel fuel was cheaper than gas. In 1997 I got my license and gas was always about .15 cents more than diesel. Now it's the other way around.

Luke

[Aero426]

I just bought a five quart jug of Citgo 5W-30 for $8.99.    There is a $7 rebate which brings it down to $1.99 for the five quart jug.

I also just bought a five quart jug of Mobil 1 15W-50 (this is the high ZDDP formula) for $23.00.   There is a $12 rebate on it.      Final cost is $11.00

I do agree that the specialty blend oils for collector cars have seen little to no downward price movement.  

[Kern Dog]

Regarding the gas prices...
I have noticed that it used to be for many years that the cheapest gas (87 octane) was at say...$2.00, the 89 octane was at $2.10 and 92 octane was $2.20. This held true for many years even as gas got over $4.00 per gallon...sorta. The incremental rise was always close to ten cents. Lately I see 87  for up to FIFTY cents less than 89 octane. Why ? Are they using 87 octane as a loss leader, a low price to get you in the door? Many new cars need 89 or better, right? Our 2015 Challenger R/T manual calls for 89. The manual trans cars call for a 91 minimum.

[Bronzedodge]

The speculators and junk bond refugees from Wall Street that ran from the mortgage loan/housing crash are now in the petroleum markets, screwing it up.

[Chargen69]

The speculators and junk bond refugees from Wall Street that ran from the mortgage loan/housing crash are now in the petroleum markets, screwing it up.

pretty much

[alfaitalia]

Count your blessings guys ....over here gas is about $7 at the moment....was around $10 about a year ago. Dino oil is about $25 a gallon and a quality fully synthetic, like Mobil 1, about $52.50. The base cost of the oil is about the same as over there....the difference is the massive tax added on top we have to pay here....and most of Europe for that matter. Funny thing is that although gas goes up and down with the price of crude oil here, engine oil does not!

So make the most of having some of the cheapest fuel in the developed World my friends....I have a feeling it wont last.

[Mytur Binsdirti]

Regarding the gas prices...
I have noticed that it used to be for many years that the cheapest gas (87 octane) was at say...$2.00, the 89 octane was at $2.10 and 92 octane was $2.20. This held true for many years even as gas got over $4.00 per gallon...sorta. The incremental rise was always close to ten cents. Lately I see 87  for up to FIFTY cents less than 89 octane. Why ? Are they using 87 octane as a loss leader, a low price to get you in the door? Many new cars need 89 or better, right? Our 2015 Challenger R/T manual calls for 89. The manual trans cars call for a 91 minimum.

I too have been saying that for a long time.

[Lennard]

Count your blessings guys ....over here gas is about $7 at the moment....was around $10 about a year ago. Dino oil is about $25 a gallon and a quality fully synthetic, like Mobil 1, about $52.50. The base cost of the oil is about the same as over there....the difference is the massive tax added on top we have to pay here....and most of Europe for that matter. Funny thing is that although gas goes up and down with the price of crude oil here, engine oil does not!

So make the most of having some of the cheapest fuel in the developed World my friends....I have a feeling it wont last.

Did you just admit that something is better in the USA than in jolly ol' England? That's a first.  

[sccachallenger]

I just bought a five quart jug of Citgo 5W-30 for $8.99.    There is a $7 rebate which brings it down to $1.99 for the five quart jug.

I also just bought a five quart jug of Mobil 1 15W-50 (this is the high ZDDP formula) for $23.00.   There is a $12 rebate on it.      Final cost is $11.00

I do agree that the specialty blend oils for collector cars have seen little to no downward price movement.  

Where did you find these deals?

[sccachallenger]

Several years ago when gas prices went through the roof the price of a quart of motor oil followed suit. Now gas is selling for just a little above what it was before but a quart of oil is still almost $7. Of course, full synthetic used to be $11-12 per quart and now it's $6-7. Did they just "normalize" dino oil prices because people are clueless? O'Reilly had a closeout sale on Castrol VR-1 full synthetic several years ago and I bought all I could find. I'm just now running out! The only oil I have purchased since then is the Pennzoil 0 weight for the Scat Pack and I'm surprised that the plain Jane oil for my daily drivers is almost as expensive.

On a related note... remember when each "grade" of gas was $0.10 more expensive as you went up? It's as if the additives cost a whole lot more than the gas itself...

Troy

Often thought the same thing! And the "oil change specials" at parts stores are a way they can move product WITHOUT lowering the list price of the oil.
Of course my friendly Dodge dealer sends me coupons advertising $19.95 oil and filter changes all the time, and if you pay for 4 in advance the price goes down even more!
With a genuine Mopar filter!

[alfaitalia]

Count your blessings guys ....over here gas is about $7 at the moment....was around $10 about a year ago. Dino oil is about $25 a gallon and a quality fully synthetic, like Mobil 1, about $52.50. The base cost of the oil is about the same as over there....the difference is the massive tax added on top we have to pay here....and most of Europe for that matter. Funny thing is that although gas goes up and down with the price of crude oil here, engine oil does not!

So make the most of having some of the cheapest fuel in the developed World my friends....I have a feeling it wont last.

Did you just admit that something is better in the USA than in jolly ol' England? That's a first.  

LOL. It seems to me that most things are cheaper.....but I have no idea how your incomes reflect that so they might seem expensive to you I guess!! And to be fair does not everyone think their own country is the best.....its a good thing!.......nothing wrong with a bit of patriotism....as long as its not jingoistic!! Rule Britania ..God Bless Her Majesty!


As a side note to a post above....diesel is now more expensive than gas (its petrol!!) here too....was always cheaper til quite recently....although in reality it a IS a cheaper fuel as you get so much further. The increased price is mainly as a result of the green lobby sticking their oar in afaik!!

[440]

Royal Purple HPS is about $100 for 5 liters here.

[alfaitalia]

Royal Purple HPS is about $100 for 5 liters here.

Blimey....never heard of it. £75 on ebay UK for 6 Quarts.....about $95. Wont be using that any time soon! Can it really be three times as good as an oil that costs a third the price Find it hard to believe.

[Aero426]

I just bought a five quart jug of Citgo 5W-30 for $8.99.    There is a $7 rebate which brings it down to $1.99 for the five quart jug.

I also just bought a five quart jug of Mobil 1 15W-50 (this is the high ZDDP formula) for $23.00.   There is a $12 rebate on it.      Final cost is $11.00

I do agree that the specialty blend oils for collector cars have seen little to no downward price movement.  

Where did you find these deals?

The Mobil 1 came from Wally World.  Rebate is good thru 10/31,    $12 on 5 quarts, limit of 2 rebates.

The Citgo was from Blain's Farm & Fleet (Illinois and Wis) store.  Ad is expired and gone, but it was a chit hot deal.    

Mobil 1 Fall rebate:    https://mobiloil.com/en/promotion/mobil-promotions/fall-rebate-2017

[Troy]

I also remember when diesel fuel was cheaper than gas. In 1997 I got my license and gas was always about .15 cents more than diesel. Now it's the other way around.

Luke

Different story and it's more supply and demand. I bought a Cummins Ram a few years ago when diesel was $1.60 and gas was $2.20. Almost immediately diesel went to $3.00. Turns out, in an effort to improve fuel economy AND save money, much of the European car market went to small diesel powered cars. Most of Europe doesn't have refineries, the oil is shipped here, refined, then gasoline is shipped back. The diesel (a byproduct of refining along with tar, heating oil, jet fuel, etc.) remained here. But once the popularity of small diesels soared, it became more profitable to ship all the diesel to Europe than to keep it here.

Count your blessings guys ....over here gas is about $7 at the moment....was around $10 about a year ago. Dino oil is about $25 a gallon and a quality fully synthetic, like Mobil 1, about $52.50. The base cost of the oil is about the same as over there....the difference is the massive tax added on top we have to pay here....and most of Europe for that matter. Funny thing is that although gas goes up and down with the price of crude oil here, engine oil does not!

So make the most of having some of the cheapest fuel in the developed World my friends....I have a feeling it wont last.

Taxes. You pay $2.19 per gallon in taxes plus a 20% VAT. That alone is more than I pay for premium after tax. Plus, as I said immediately above, there's little refining in Europe so the cost of fuel includes a couple trips across the ocean.

Troy

[alfaitalia]

According to a quick google Europe has about 130 refineries compared to the USAs 140 ish....not so different. This excludes the very small ones....under 20,000 barrels per day.

[sccachallenger]

Thanks Aero!

[73rallye440magnum]

I also remember when diesel fuel was cheaper than gas. In 1997 I got my license and gas was always about .15 cents more than diesel. Now it's the other way around.

Luke

Different story and it's more supply and demand. I bought a Cummins Ram a few years ago when diesel was $1.60 and gas was $2.20. Almost immediately diesel went to $3.00. Turns out, in an effort to improve fuel economy AND save money, much of the European car market went to small diesel powered cars. Most of Europe doesn't have refineries, the oil is shipped here, refined, then gasoline is shipped back. The diesel (a byproduct of refining along with tar, heating oil, jet fuel, etc.) remained here. But once the popularity of small diesels soared, it became more profitable to ship all the diesel to Europe than to keep it here.

Count your blessings guys ....over here gas is about $7 at the moment....was around $10 about a year ago. Dino oil is about $25 a gallon and a quality fully synthetic, like Mobil 1, about $52.50. The base cost of the oil is about the same as over there....the difference is the massive tax added on top we have to pay here....and most of Europe for that matter. Funny thing is that although gas goes up and down with the price of crude oil here, engine oil does not!

So make the most of having some of the cheapest fuel in the developed World my friends....I have a feeling it wont last.

Taxes. You pay $2.19 per gallon in taxes plus a 20% VAT. That alone is more than I pay for premium after tax. Plus, as I said immediately above, there's little refining in Europe so the cost of fuel includes a couple trips across the ocean.

Troy

How can you consider the other items listed to be a byproduct?

They are different molecular weights HC chain length.

This is like saying gas is a byproduct of diesel.

[Troy]

According to a quick google Europe has about 130 refineries compared to the USAs 140 ish....not so different. This excludes the very small ones....under 20,000 barrels per day.

Ok... as of 2016 "Europe" produces 16 million barrels per day. The US 18 million. Europe has 743 million people and the US has 323 million. More Google for you:
https://www.google.com/maps/d/viewer?mid=1mqwnAO-GYcPDX6BZ9h5hDgHQR8w&hl=en_US&ll=48.17947676740224%2C37.93508668749996&z=3

I also remember when diesel fuel was cheaper than gas. In 1997 I got my license and gas was always about .15 cents more than diesel. Now it's the other way around.

Luke

Different story and it's more supply and demand. I bought a Cummins Ram a few years ago when diesel was $1.60 and gas was $2.20. Almost immediately diesel went to $3.00. Turns out, in an effort to improve fuel economy AND save money, much of the European car market went to small diesel powered cars. Most of Europe doesn't have refineries, the oil is shipped here, refined, then gasoline is shipped back. The diesel (a byproduct of refining along with tar, heating oil, jet fuel, etc.) remained here. But once the popularity of small diesels soared, it became more profitable to ship all the diesel to Europe than to keep it here.

Count your blessings guys ....over here gas is about $7 at the moment....was around $10 about a year ago. Dino oil is about $25 a gallon and a quality fully synthetic, like Mobil 1, about $52.50. The base cost of the oil is about the same as over there....the difference is the massive tax added on top we have to pay here....and most of Europe for that matter. Funny thing is that although gas goes up and down with the price of crude oil here, engine oil does not!

So make the most of having some of the cheapest fuel in the developed World my friends....I have a feeling it wont last.

Taxes. You pay $2.19 per gallon in taxes plus a 20% VAT. That alone is more than I pay for premium after tax. Plus, as I said immediately above, there's little refining in Europe so the cost of fuel includes a couple trips across the ocean.

Troy

How can you consider the other items listed to be a byproduct?

They are different molecular weights HC chain length.

This is like saying gas is a byproduct of diesel.

Maybe I incorrectly use "byproduct". Can you make only gasoline out of oil without making anything else? Only diesel? Only heating oil?

Troy