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Why does synthetic oil price go up?

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Old Jun 7, 2007 | 10:03 AM
  #1  
engineerjoe's Avatar
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From: Colorado Springs
Question Why does synthetic oil price go up?

Stupid Question:
I was just wondering why the price of SYNTHETIC oil goes up when the price of the dyno stuff does?
Is it purely a precieved price markup? (better oil means higher price)
Or is the production of synthetics linked to the supply of the dyno stuff?
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Old Jun 7, 2007 | 10:13 AM
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gonzo's Avatar
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From: Rochester, NH
All oils are going up along with gas.
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Old Jun 7, 2007 | 10:14 AM
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Why does air get more expensive at the gas station?

Must be delivery costs which is why everything goes up in cost.
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Old Jun 7, 2007 | 10:19 AM
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Originally Posted by engineerjoe
Stupid Question:
Or is the production of synthetics linked to the supply of the dyno stuff?
Synthetic oil is partly/mostly made from dino squeezings:
- http://en.wikipedia.org/wiki/Synthetic_oil
Crude oil and natural gas are the main bases of the feedstock. Plus, it takes energy to break the crude apart and put it back together again.

Last edited by 4Crawler; Jun 7, 2007 at 10:29 AM.
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Old Jun 7, 2007 | 10:26 AM
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From: Westminsterl, CO
Originally Posted by X-AWDriver
Why does air get more expensive at the gas station?

Must be delivery costs which is why everything goes up in cost.
I would have to agree with the delivery cost. The price of the Syn oil might not change, but the cost of gas/oil that the trucks and other vehicles that deliver it to you goes up.
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Old Jun 7, 2007 | 10:53 AM
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ewong's Avatar
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From: Philly PA
+2 - what 4Crawler said.......

Or is the production of synthetics linked to the supply of the dyno stuff?
YES

Sythetic oil is typically made from the same or similar base stocks that could be used to make regular refined oils.

So both "dino" oil and Synthetic oil start with the same raw materials....
Since the raw material costs go up - both prices rise.

While it is possible to make syntehtic oils from non "dino" sources of raw chemicals - the costs of doing so usually outweigh the "use dino base stocks" options.
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Old Jun 7, 2007 | 11:59 AM
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From: torrance, CA.
about the only thing doesn't go up is my mortgage...30 yr fixed 5.25% .
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