Due to the rapidly increasing costs of the oil industry that also effects the synthetics AMSOIL makes by raisinng production costs, additive costs, etc., AMSOIL is putting into effect a new surcharge policy that will fluctuate with the market. The good news to this is that base prices will remain the same but will be able to go up and down depending on the market and hopefully one day disappear completely. The down side is that it does mean it will cost a little more to purchase AMSOIL, and will change each month. This isn’t an uncommon practice that companies need to do in order to try and keep from taking losses in a market like we have today. In the past the steel industry needed to do the same when demands overseas started pulling material away from manufacturers here in the States. And when I used to do some deliveries for a courier service in the past, their delivery prices varied with a fuel surcharge to cover the extra costs.
Below is a little more info from Amsoil about the new surcharge:
“Due to the quickening pace of the volatility in the energy sector and its undeniable impact on the prices of nearly everything, AMSOIL must develop a more efficient way to address these cost increases than continually trying to re-issue new price lists with prices that are inevitably behind the times by the time they become effective. Much like trucking companies, utilities and others faced with wildly fluctuating costs, AMSOIL is forced to implement an energy surcharge that will be applied to the total product value of each order and will be effective May 1, 2008 in the United States and Puerto Rico. If it is determined that Canada will be affected an announcement will be made.
By doing so the company will not have to continue re-issuing price lists to all customers, and it should help avoid changing discount schedules, freight schedules, etc., until some semblance of stability returns to the market….
The initial surcharge is expected to be in the 3%-7% range. The company will wait until the very end of April to establish the exact percentage and will modify it on a monthly basis as needed….”
If you are needing oil soon, be sure to contact me before the end of the month to order at the current prices without the surcharge. These orders would need to be in before the close of business next Wednesday so that I can make sure they are processed by Amsoil before.
