International oil prices soared domestic oil prices skyrocketing
In recent days, some lubricant brands have seen their prices jump more than two times in just a few weeks. “We just woke up to another price hike!†joked a staff member at the Sinopec Great Wall Lubricants outlet on Hubin South Road. Lubricants are essential for machines and vehicles, and now, in Xiamen, they’ve been on a sharp upward trend. Some brands have increased their prices by over 20% in a short period.
“It’s like we’re adjusting prices every few days,†said a sales representative at a local lubricant store. “Customers come in, see the new prices, and immediately ask why. We have to explain patiently.†The market has experienced significant fluctuations, with price adjustments often being substantial. For example, a certain gasoline engine oil that was priced at 30 yuan per barrel at the end of last year is now selling for as high as 46 yuan per barrel. “We don’t know if it will go up again soon,†the employee added.
According to reports, Sinopec recently adjusted the prices of its “Great Wall†lubricants, affecting hundreds of products. A spokesperson from Sinopec Xiamen Lubricants Sales Department stated that the average increase was around 20%, while compared to the same period last year, the increase was about 40%. Similarly, PetroChina's Kunlun lubricants also underwent a major price adjustment in February, with some products seeing another rise in March. Shell, a foreign brand, has also raised its prices—its 4-liter lubricant now costs around 90 yuan. “Foreign brands tend to be more expensive than domestic ones by over 30%, and while they don’t adjust as frequently, when they do, the changes are more significant,†noted a shop manager.
The main driver behind this price surge is the fluctuation in international oil prices. “Lubricants and fuel are closely related,†explained an industry insider. “The raw material for lubricants is base oil, which comes from crude oil.†As international oil prices continue to swing, so do the prices of base oil, directly impacting the final product. Since the beginning of last year, base oil prices in China have risen sharply, with some products increasing by as much as 100%, and others by over 40%.
Experts believe the price increases are far from over. Unlike gasoline and diesel, which are regulated by the government, lubricant prices are more flexible and thus more sensitive to global oil trends. With international oil prices still hovering around $60 per barrel, there's still a gap between domestic and global pricing. This means more hikes could be ahead.
The rising cost has started to affect consumer behavior. Some customers are extending the intervals between lubricant changes to cut costs. “It’s like a meal—when the price goes up, people eat less,†said a salesperson. “Some customers are delaying their purchases or using their current stock longer.†Despite the challenges, the lubricant market remains essential, with demand spread across industries, from factories to transportation. As prices keep climbing, the pressure on both businesses and consumers continues to grow.
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