While many of the price increases in 2021 and 2022 are up to 15% and higher-well above the 4%-6% seen many years prior-three majors recently announced increases of up to 25%. Chevron had an increase of up to 25%, which took effect on March 28, while ExxonMobil and SOPUS each had one of up to 25%, taking effect on March 15. The reasons for the unprecedented magnitude of the recent price increases are the substantial hikes in costs at all levels of the supply chain. These costs include base oils, additives, packaging, transportation, labor and others. Of particular note is the escalating cost of lubricant ad- ditives. While the industry may see one to two lubricant additive price increases in any given year, there were four last year. In 2022 there have already been two announced by Afton and Infineum and one by Lubrizol. In addition to this being uncharacteristic in terms of two increases being grouped so close together, the percentage of the increases is more than double those seen in years past. But, as with lubricants, the price increases for additives are also driven by substantially high costs.
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