The US base oils PPI rose 7.8% month on month in April, the largest increase since June 2022, as energy costs surged following supply disruptions from end-February
The lubricants PPI rose 2.2%, the fastest since September 2022, with both readings outpacing the 1.4% rise in overall US producer prices
US base oils and lubricants producer prices rose in April at their fastest pace since 2022, outpacing broader wholesale inflation amid higher energy costs following end-February supply disruptions.
The base oils producer price index (PPI) rose 7.8% month on month in April, the largest increase since June 2022, Bureau of Labor Statistics data showed.
The lubricants PPI increased 2.2%, the fastest since September 2022.
Both readings outpaced the 1.4% month-on-month rise in overall US producer prices in April. Group II base oils prices rose more than 50% in April from March, with gains extending into May.
Market Repercussions
The acceleration in base oils and lubricants prices reflected higher energy costs following end-February supply disruptions, arriving at a time when US base oils output was already under pressure.
Lubricants price increases lagged the base oils surge, reflecting the slower pass-through from feedstock to finished product, and a gap that pointed to further lubricants price rises ahead.