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New price hike expected at oil change shops in October
By Muhammad Al-Abdullah
Published in The Saudi Gazette on 21 - 09 - 2010

Motorists' budget for oil change and other automotive services will be soon impacted due to the expected rise in auto oil prices by at least SR10 per box.
The new increase, which will be added to the auto oil manufactured locally in August and September, brings the three-month increase to SR30 per box. The price hikes are said to be caused by increases in the price of the basic oil, which is imported by a sole local company.
The importing company has decided to implement the new prices gradually until the end of the year and stressed that it is final and not negotiable because they have been approved after the reduction of the internal incentive for all distributors.
According to the new price list, prices range between SR145 and SR395, up from the previous range of SR135 to SR380.
Some distributors in the Eastern Province said the real causes for the increases are not clear and pointed out that the explanation is incomprehensible and unconvincing.
They said the timetable, which established prices until the end of the year, creates a margin for manipulating them.
This shows there is a trend for increasing prices at the beginning of the fiscal year, which is thought to be associated with the increase in the price of oil in the international markets, one distributor said.


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