Why is motor Oil so expensive?
- Thread starter Trump
- Start date
Because they can?
Sadlsor
Site Supporter
Much of reality defies logic.
Oil prices are but one example.
I'm sorry that I can offer no better answer.
Oil prices are but one example.
I'm sorry that I can offer no better answer.
Well, the price of crude oil isn't "at all time low's." Before about 1970, a barrel of crude went for around $3. Adjusting for inflation that's still only about $20 in 2020 dollars. The current US price is close to $50.
That said though, what you're paying for in a quart of oil today has very little to do with the price of oil in the container (which might be 50 cents worth of oil, at most) and everything to do with R&D, additives, and market forces for a much better, longer-lasting product than fifty years ago.
That said though, what you're paying for in a quart of oil today has very little to do with the price of oil in the container (which might be 50 cents worth of oil, at most) and everything to do with R&D, additives, and market forces for a much better, longer-lasting product than fifty years ago.
You left out marketing costs, packaging, distribution, middlemen, and profits. The markup on gas is fairly low, the profit comes from selling many gallons. Oil, is the other way round (though I have no idea of the margin on packaged oils). Have you ever walked into Wally's and carried out 20 gallons of oil? While a gas station gets deliveries of 5000 gallons at a crack, most service stations will buy oil in 1 or 200 gallon volumes.
You can always squeeze your own.... Some guys make their own bio diesel fuel from used french fry oil.
If you think that is expensive, DO NOT ask for a litre of BMW's finest unless you're sitting down 
.
Upt'North.
. Upt'North.
Shawn K
Professional Cat Confuser
1) Profit
2) Preexisting inventory
2) Preexisting inventory
Well I'am thinking unlike gasoline that has to be refined and add the additives and your done. Motor oil is way more processed. Seems like every year there is new certifications for motor oil. What is it now GF 6 specifications. And SN plus and Dexos specifications. New weight classes of oil Ow 16. Compared to gasoline that has been refined the same way for a Hundred years motor oil is way more complicated.
As my father always said. "If you don't like the price, make it yourself."
Beeflips
(it's me...Greg) Returning some videotapes
Refinement, supply and demand. Gas demand is down, which will make it cheaper. A single quart of most oils I use are around $8, but bulk is cheaper. I don't know how you're going to remedy that without making your own from used oil. But then, it might be enlightening when you try it.
- Joined
- Feb 11, 2006
- Messages
- 8,053
- Location
- Jacksonville
- Bike
- GL1800 R1200RT NC700
- 2025 Miles
- 004972
Capitalism.
why would you go the the grocery store and by a qt of milk when you could by a gallon for a few bucks more ? You can get dino oil for $17 (5 qt.) that comes out to $3.40 a quart. So whats your beef? If you're buying small your paying for the convenience. When you make purchases in small amounts you will always pay more. Just the nature of capitalism.
I'm a bit confused...
I've paid the same price for motor oil as I've paid for the last 5-6 years. I shop at Walmart for T-6 for bikes and Mobile 1 synthetic for the Jeep and two Mercedes, and it's been the same $$ ... about $20 for the jug.
Oh wait ... another oil thread hidden ...
Set to <Ignore>
Never heard of an oil related engine failure.
- Joined
- Dec 3, 2004
- Messages
- 262
- Location
- South Western Illinois
- Bike
- S10, KLX300, DL650
- 2025 Miles
- 005023
I have used Shell Rotella T4 and T6 for years........cheap and works for me. One gallon of T4 15-40 is $12.50 at Walmart. Lack of oil is the cause of “oil related failures”.
I do run OEM labeled oil and filters while a new motorcycle is under warranty.....after that, Rotella and HiFloFiltro oil filters are used.
Erdoc48
Site Supporter
- Joined
- Jan 25, 2009
- Messages
- 1,385
- Age
- 60
- Location
- Myrtle Beach, SC/ Sometimes Colorado
- Bike
- 94/00/04 STs, FSC600
Personal opinion: Oil at $5 per quart (T6) is neither cheap nor expensive- you get what you pay for in terms of protection and it’s a whole lot cheaper than a new engine. I use a Mobil 1 filter (M1-110A) and the 4 qts of the T6- cheap insurance once a year for ~ $33. Have the dealership change it for you and then that gets expensive very quickly.
rwthomas1
Site Supporter
About $35 for an oil change. So $35 / 8000miles = 0.004375. If I'm looking at that correctly, less than half a cent per mile? Uhh, I got bigger fish to fry than worry about that....
RT
RT