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Old 03-29-2016, 10:04 AM   #1
bronsin
 
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Why Is Motor Oil Still $5 a Quart?

A barrel of oil has fallen from over $100 to $30 and gas from almost $3 to less than $2 yet motor oil is still $5.

Why?
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Old 03-29-2016, 10:38 AM   #2
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Depends where you are at, I suppose. We sell ours for $2.70 a qt.
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Old 03-29-2016, 12:47 PM   #3
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Motor oil is not consumed as quickly as fuel is therefore originating purchase price from suppliers takes much longer to filter through. That and they otherwise have no reason to lower the prices.

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Old 03-29-2016, 01:17 PM   #4
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Oil is hovering around $40 a barrel . Here are few deals on oil with help of rebates . The NAPA ends 31st and BJs Wholesale the 30th . I had Wal-Mart match the Pennzoil Platinum synthetic . They likely would do the same for the Pennzoil conventional and the MOBIL 1 . 5 quart jugs at Wal-Mart are usually best for savings . The Pennzoil rebate is $2 a quart and ends December 31 , http://www.pennzoil.com/promotions-national-rebate/ . The Mobil rebate ends the 31st ,https://mobiloil.com/en/promotion/mo...nd-mobil-super ( includes conventional ) . The Pennzoil synthetic is $3.29 a qt. with rebate ( ex.: 4 qts. purchased ) . BJs Wholesale is a 6 qt. case at $37.99 - $10.00 = $27.99 - $12.00 (rebate Mobil1 AFE , Ext. ) = $15.99 / 6 ( qts. ) = $2.665 per quart . Tax excluded .
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Old 03-30-2016, 11:15 PM   #5
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IMHO, the biggest cost in motor oil is R&D, licensing, advertising, and additives. the base oil is cheap in comparison, unless we are talking group 4 or group 5 that are used in small amounts even in the "full synthetic." even the group 2 or 3 base oils are disconnected from crude oil price as they are highly refined.
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