Higher fuel prices as a result of the Iran war aren’t the only challenge facing drivers: garages are now warning that higher engine oil prices mean motorists can also expect higher servicing bills.
Before the start of the war in February, a barrel of Brent crude, the global benchmark for oil prices, cost around $63 (£46). Since the war began, it has ranged from a high of $120 (£88) to $100 (£73) at present.
While current peace negotiations may yet bear fruit, any further easing of the price will take considerable time to work through supply chains.
The most keenly felt impact of higher oil prices on motorists’ wallets has been the rise in the price of fuel, which have climbed by more than 40p per litre in some cases.
While no comparable price indicators exist for engine oil, garages contacted by Autocar said that it too has become more expensive.
The manager of one garage in Hampshire said that before the start of the war, a 200-litre barrel of oil that cost the business £350 now cost it £600, an increase of more than 70%.
“That’s the trade price, so there’s our mark-up to go on top,” he said. “At the moment we’re absorbing the extra cost, but eventually we will have to raise our prices to customers.”
The manager of another garage confirmed it was also paying more for engine oil: “We buy in quantities from one litre to 200 litres and the prices have rocketed. We can’t afford to take the hit so we’ve had to raise our prices as well. However, it’s a balancing act between staying in profit but still attracting customers.”
The shortages and disruptions to oil supplies as a consequence of the Iran war have forced at least one car manufacturer to suspend deliveries of oils to its dealer network and to the wider motor trade.
At the end of March, four weeks after the war started, Trade Parts Specialists (TPS), the Volkswagen Group’s wholly owned official parts supplier, paused supplies of its Quantum and Genuine oils ranges for two days.
A spokesman said: “This was a precautionary approach to validate our UK supply chains and ensure we could continue to supply customers. Since then, oil has been available to both TPS and main dealers.
"Given the current geopolitical climate, our teams are carefully monitoring the situation.”
The manager of an independent garage specialising in Volkswagen Group vehicles said that, coming on top of the increase in the cost of motor oil, the pause in supplies of the manufacturer's recommended oils was "very disruptive".
“I was forced to drive around all the VW dealers I know buying what they could spare of their existing stocks,” they explained. “On top of that, I’m paying 20% more for quality oils for other makes of car and still having to be competitive.
“My advice to anyone whose car is due a service in the next couple of months is have it done now, before garages have to raise their prices and supplies of quality oils are interrupted.”
