Amid falling oil prices and increasing lubes tax, ExxonMobil rethinks its pricing strategy
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A new pricing strategy? Image: ExxonMobil is trimming its lubricants pricing in China for the first time after a sharp decline in global crude oil prices.
The company is the second US major to do so after Chevron revised its lubricants prices last month and will join the ranks of Castrol and Shell who are reducing prices by as much 3.5% on finished lubricants products.
The company will reduce lubricants, both branded and unbranded, and grease prices by around 3.5% as of February 2nd this year. However, price drops are modest compared to the tumbling price of oil, which has fallen in value by more than half since summer last year.
The oil giant has advised customers not to reduce aviation oil prices at least until the 16th of February.
Meanwhile, Beijing said it would actually raise the consumption tax on a range of oil products for the third time in three months, although it did pledge to reduce prices on gasoline and diesel.