The Rationing Has Begun
Surviving the fuel crisis might get a bit harder. Now it appears that we have a real motor oil crisis here. Earlier this month, Toyota released a bulletin to its dealers, telling them to ration and substitute certain grades for their cars, Automotive News reports.
The shortages continued into Nissan’s camp. We caught wind of its announcement before the brand even sent it. Now, about a week later, the rationing has begun, and there are now guidelines on who gets priority.
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Motor Oil Shortage
Nissan is rationing 5W-30 and 0W-20 Nissan Genuine Motor Oils. Starting this week, Nissan’s stock of these oils has dropped by 30% year-on-year. With only 70% left in the tank, the brand is already taking precautions, sending memos to dealers to manage its stock during the shortage.
The brand will prioritize certain owners, such as those claiming “warranty, extended warranty, recall repairs, goodwill, and prepaid maintenance,” according to Kim Less, the vice president of aftersales at Nissan Americas, in the bulletin addressed to Nissan dealers.
“Given these constraints, it is critical to prioritize the use of Nissan Genuine 0W-20 (and 5W-30, where applicable) for warranty, extended warranty, recall repairs, goodwill, and prepaid maintenance,” Kim Less, vice president of aftersales, Nissan Americas, said in the May 15 bulletin to Nissan dealers.
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Alternatives
Less also stated in the bulletin that the brand will try to secure alternative sources of motor oil for its customers, and that they “have options.” It’s not yet known whether Nissan will field substitutes, as Toyota stated in its announcements.
On top of that, there are industry-wide shortages. Other sources have reported that retailers like Autozone have also reported shortages from Exxon Mobil, leaving a lot of shelf space unfilled.
Meanwhile, dealer groups are sitting on a good supply of oil, while oil change centers like Valvoline’s quick-service chain have stated that the U.S. and Canadian markets will have enough for “today and for the foreseeable future.”
The Forseeable Future
For now, the brands’ top brass is taking the most action in light of this shortage. Simple economics also dictates that if a product is in short supply, prices are sure to rise, and some brands are already feeling the pinch. “We’re all grabbing it, and we’re all paying stupid prices for it, but if you want it, that’s what it is,” said Gacita of Petra Automotive Products.
Unfortunately, consumers will be paying higher prices for their oil changes, if not now, then maybe the next one will cost you a lot more. Back then, it was fuel; now it’s oil and maintenance. Parts are also getting more expensive, so consumers will be paying more across the board.
