02/05/2026 by Joel Thompson
From Texaco and TYGRIS to Shell and Solest, there are a wide range of lubricant brands providing products for global distribution.
These oils and fluids are specially formulated to lubricate, protect and cool equipment like engines, heat transfer systems and plant machinery. Extremely diverse, the solutions range from grease to gear oil, but they also vary in terms of price to match different operating budgets and bottom lines.
Like any product on the market, lubricant prices sometimes experience change. In this article, we’ll lift the lid on lubricant price changes and discuss some of the key drivers that create increases.
Crude oil volatility
Petroleum based lubricants are mostly made up of mineral base oils manufactured from crude oil.
Resources are distilled and refined, separating heavy hydrocarbons from the crude oil to produce base oils for lubricating oils, greases and fluids. As a result, any factors that impact the crude oil market can also affect the price of these products.
Examples include geopolitical tensions and disruptions to oil production, especially in major areas where crude oil is sourced like the Middle East.
Decisions of the Organisation of Petroleum Exporting Countries (OPEC) also impact base oil costs. OPEC sets production targets for member nations, affecting global supply. When it reduces production and restricts supply, prices of oil typically rise, but when production is increased and supply is greater, it pushes prices down.
Mismatched supply and demand
In the lubricant industry, a supply and demand mismatch can happen when the volume of finished lubricants required exceeds supply available, resulting in shortages and price increases.
Spikes can also be caused by reduced refinery capacity when there is a lower demand for kerosene and other petroleum-based fuels.
Additive availability
Cutting-edge lubricants designed to deliver high performances have formulations that include specialised additives. These agents are added to either improve or dampen a property of the base oil or supply an entirely different attribute that the base oil doesn’t have.
As they are made with raw materials, any lack of availability can boost production costs and the price of the lubricants.
Logistics and transportation costs
From shipping key resources like crude oil and raw materials for additives to distributing finished products, logistics and transportation are critical elements of lubricant production and delivery. Consequently, any factors impacting them, including container shortages, shipping bottlenecks, blockades, tariffs, fuel increases and other causes of higher transportation costs, have a direct impact on the purchase price of lubricant products.
Economic factors and inflation
Inflation and economic factors significantly influence lubricant prices. The lubricant industry is heavily dependent on industrial supply chains for crude and raw materials. Rising inflationary pressures result in higher lubricant prices due to increased costs for energy, transport and labour, plus higher prices of steel and plastic for lubricant packaging. Such cost increases are partly passed on to consumers and reflected in the price of finished products.
Supplier price increases
To maintain profits, lubricant manufacturers must keep the price of their products aligned with increases in cost of the materials they use to make them.
As the price of raw materials like crude oil and the silver, magnesium, graphite and rapeseed used to create additives rises, so too do the cost of oils, greases and fluids. Additionally, an increase to their supply chain costs means lubricant makers must also add to the prices they charge.
Consider what you pay for when purchasing lubricants
Whether your operation uses hydraulic fluid or mould release oil in its daily operations, selecting and purchasing the best lubricant for the job is vital for performance, productivity and effective mechanical maintenance.
As a result, it is worth remembering that buying low-cost lubricants often offers a false economy, as their inferior quality can impact operations and even increase running costs as products run out faster and work less efficiently, putting equipment at risk.
While more expensive to order, high-quality advanced lubricants can provide a far greater return for their investment through improved protection for equipment, longer drain intervals and an extended active service life. Using an incorrect or insufficient lubricant can not only negatively impact work rates, but it can also result in lasting damage to expensive mechanical equipment.
Purchasing all lubricant products from a single supplier in bulk can help streamline inventory and reduce ordering and shipping costs to help balance price increases.
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