Used Oil & Recycling Services Price Changes

Lube-Tech Announces Changes to Used Oil Program and Pricing


Effective December 29, 2014 Lube-Tech Liquid Recycling will be eliminating our pay for used oil program and adopting a service fee model for the collection of used oil and environmental services. As outlined below, we are taking action along with most leading recycling companies given adverse energy market conditions and the value we add handling regulated waste streams.

This pricing change reflects the following ongoing market conditions:

- Record low crude oil and related fuel prices, down 44% since December 2013

- The used oil market – industrial/asphalt fuels and base oil re-refining – is over supplied

- Asphalt production has declined 40% and companies have converted to lower cost natural gas and propane

- A 2nd consecutive year of recycling industry losses with lower crude, base oil, and fuel pricing the new normal

Examples:

                                                                 Dec 13'           Dec '14           $ Change           % Change

Crude Oil - Per Barrel                                $ 99.94            $ 55.96 $       (43.98)                -44%

No. 2 Diesel Fuel                                        $ 3.04              $ 1.69 $          (1.35)                 -44%

No. 6 Diesel Fuel                                        $ 1.89              $ 1.06 $          (0.83)                 -44%

Propane                                                       $ 1.27              $ 0.56 $          (0.71)                 -56%

Group II Base Oil                                        $ 3.75              $ 2.45 $          (1.30)                 -35%

Given these market conditions a reset in historical practices is required to ensure an ongoing capability to provide the essential service of used oil recycling. Our new service fee model will reflect the following:

- Used oil, less than 150 gal collection event - $25.00 per event service charge

- Used oil, greater than 150 gal collection event – No charge

- Filters - $55.00 per drum and $260 per tote service charge

- Absorbents – $125.00 per drum service charge

- Antifreeze – $1.00 per gallon service charge

Lube-Tech will continue to monitor market conditions and make price adjustments accordingly. We appreciate the opportunity to provide you with a safe and reliable used oil recycling service. Should you have questions regarding this price change, please contact your Lube-Tech sales representative or our recycling customer service group at 1-866-492-0808.