Diesel fuel isn’t the only oil-related expense pressuring trucking fleets.

Some fleets tell HDT that while fuel surcharges help offset soaring diesel prices, they’re also paying more for engine oil and other lubricants as the war involving Iran disrupts global oil supplies.

Responses from Shell and the American Petroleum Institute point to a particular problem: shortages of certain base oils used to make finished lubricants, especially premium synthetic engine oils.

Neither provided figures showing how much finished lubricant prices have increased. But both described supply constraints, and API has extended emergency provisions allowing engine oil marketers to change approved formulations when ingredients become unavailable.

Why Synthetic Oils Are Feeling the Squeeze

The supply pressure is particularly acute for Group III base oils, which are used in many synthetic engine oil formulations.

“There is a tighter availability of certain Group III base oils, which impacts the ability to formulate premium full synthetic low-viscosity formulations,” Shell said in written responses to HDT.

Shell attributed price pressure primarily to a broader shortage of key base oils, especially Group III. The company said it is managing effects on production of select engine oils and drawing on its supply network to address the problem.

The impact extends beyond engine oil. Shell said some driveline lubricants also are affected.

API said the Group III supply chain has tightened further since August. Some marketers may need to switch base oil sources because they cannot obtain the ingredients used in their approved formulations, according to Bill O’Ryan, API’s director of Engine Oil Licensing and Certification System/DEF.

“As inventories tighten and supply disruptions continue, lubricant marketers may face challenges obtaining the specific base oils used in their approved formulations,” O’Ryan said.

That has raised concerns about product shortages, supply continuity and the availability of certain low-viscosity motor oils, he said.

More Than a Crude Oil Price Problem

The lubricant supply squeeze involves production capacity, shipping and the availability of replacement supplies.

In a June explanation of the crisis, the Independent Lubricant Manufacturers Association said damage to Middle East production facilities, depleted inventories and limited alternative supplies would complicate recovery even if shipping conditions improved.

Refinery economics also play a role. Stronger returns from diesel and jet fuel can make those products more attractive to refiners than base oils, potentially limiting replacement production, the association explained.

That helps explain why relief at the fuel pump would not necessarily mean immediate relief on a fleet’s lubricant bill.

API Extends Emergency Formulation Flexibility

The supply disruptions have prompted API to invoke Emergency Provisional Licensing under API 1509, the standard governing its engine oil licensing program.

The provision allows licensed engine oil marketers to temporarily modify formulations when extraordinary disruptions prevent them from obtaining required raw materials.

API extended that authorization for another 90 days beginning October 1, citing disruptions at multiple Middle East base oil refineries and severe global base oil supply shortages.

The flexibility comes with testing, technical review, traceability and accountability requirements, O’Ryan said.

 The Independent Lubricant Manufacturers Association, which requested activation of the emergency program, said participating marketers must provide technical information demonstrating that substitutions will not adversely affect the performance standards claimed for their licensed products.

New Heavy-Duty Oil Categories Remain on Schedule

Despite the supply challenges, API and Shell said the new API CL-4 and FB-4 heavy-duty engine oil categories remain on schedule for first licensing Jan. 1, 2027.

Shell said it is finalizing its Rotella formulations to meet that date.

How much fleets ultimately pay for those products remains unclear. API said it does not set or predict lubricant prices. Shell declined to discuss price movements, citing antitrust rules.