Chevron Announces Price Increase

April 20, 2012

Dear Valued Chevron Lubrication Marketer:

Chevron is announcing a general price increase to be effective May 21, 2012. Chevron will increase the prices of all lubricating oils by 3%-6%. In certain instances, specific products may increase in amounts that are outside of this general increase.

This increase is being driven by the continuing rise in base oil and additive costs which impact the manufacturing of our products.

We understand and appreciate the efforts required by our Marketers to communicate this increase to your customers. Our posted price changes by product and sku will be available in Business Point by April 24, 2012.

Please note:

  • The new prices will be effective on May 21, 2012.
  • To manage our order fulfillment and to provide the ability to meet the needs of all of our customers, we would appreciate that you place your orders consistent with historical order patterns. Orders delivered between April 23, 2012 and May 18 2012 that exceed 110% of your average monthly volume for the First Quarter 2012, will be billed at the new prices to be effective May 21, 2012.
  • Your average monthly volume is defined as your average monthly purchases from January 1, 2012 to March 31, 2012.
  • Additional plant loading slots will not be scheduled beyond normal business hours; therefore we ask that you please place your orders consistent with your weekly order patterns. Please plan accordingly as large order quantities placed the week prior to the increase will be reviewed and may not be accepted by Chevron in order to better meet all customers’ needs.
  • Details regarding your average monthly volume are available to you through your LBC Account Manager.

The Chevron Lubricants sales staff is committed to meeting your needs. Your Lubrication Business Manager will contact you with more details and supporting information.

As always, thank you for your business.

Sincerely,

Wayne Ederer
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Manager – Lubrication Marketers