“Oil has been a sore subject for us.”
That’s Matt Webb, who owns and operates Premier Oil Change, which has two locations in Redding and one in Palo Cedro.
The surge in oil prices caused by the Iran war is being felt by quick-lube oil shops across the country.
“Our cost has gone up 30% on our oil products. We have not raised our prices but will most likely need to in the near future as the oil companies have informed us that we will probably see more increases by the end of summer,” Webb said.
In a recent Bloomberg article, Holly Alfano, CEO of the Independent Lubricant Manufacturers Association, said relief doesn’t appear to be coming anytime soon.
“This is just the beginning,” Alfano told Bloomberg.
Said Webb: “What may become a bigger issue in the near future is the availability of some products. Oil has become more complex in the last few years with new specs coming out regularly. We carry a large variety of oil with specific specs to cover OEM warranties. We have been told that some of these will run out in the next 30-60 days.”
John Cassidy, of Cassidy’s Auto Lube on Lake Boulevard in Redding, said his business is facing the same cost pressures. “It’s just hitting us now,” he noted.
The cost of oil for Cassidy has gone up about $1.75 a gallon recently and he has heard it could jump to $5 or $10 a gallon.
“We try to absorb the costs. But all these different price increases, it’s just kicking our (butt),” said Cassidy, whose family has two other shops in Redding and one in Red Bluff. Cassidy has been in the auto-lube business for 46 years.
“This is different,” he said of how the current situation compares with the cost vagaries of the industry over the years.
Gas prices also play a role. The average price for a gallon of unleaded in Redding was $5.93 on May 14, which was up more than a $1 a gallon from a year ago, according to AAA.
“Additionally, we always see a dip in volume when the gas prices go up. People adjust their habits and drive less or stretch out the oil change because they are spending that budget on gas. We have seen this already,” Webb said.
Want to work at Dunkin’?
With opening day for Redding’s first Dunkin’ approaching, the management team is getting ready to host a job fair.
Christy Robinson, Dunkin’s regional manager in Redding, said they are fine-tuning the details for the event and more information is forthcoming.
Meanwhile, there was buzz that Dunkin’ would open this month, but Robinson said there have been some setbacks and now it’s looking like the coffee/donut house will open in late June or early July.
Redding’s first Dunkin’ shares space with the Chevron Extra Mile convenience store near the corner of Bechelli Lane and South Bonnyview Road, across from the Costco shopping center.
“The customers should expect a fun environment. It’s totally different from Starbucks,” Robinson said of Dunkin’.
“We have a lot more ice drinks, and the refreshers are fun,” she said. The refreshers typically include green tea, fruit flavoring, B vitamins, ice and water, per Dunkin’s web site.
Of course, Dunkin’ built its brand on donuts, and those are still in demand. Robinson said chocolate-frosted and pink-frosted donuts with sprinkles are popular. Dunkin’ also sells Munchkins — its version of donut holes.
Bagels, breakfast sandwiches and hash browns are among other items on the menu.
The Redding location will have a drive-thru window.
Stay tuned.
David Benda covers business, development and anything else that comes up for the USA TODAY Network in Redding. He also writes the weekly “Buzz on the Street” column. He’s part of a team of dedicated reporters that investigate wrongdoing, cover breaking news and tell other stories about your community. Reach him on Twitter @DavidBenda_RS or by phone at 1-530-338-8323. To support and sustain this work, please subscribe today.
This article originally appeared on Redding Record Searchlight: The buzz on oil prices hitting Redding auto-lube shops. Dunkin’ time
Reporting by David Benda, Redding Record Searchlight / Redding Record Searchlight
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