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Why are oil prices different? Are their costs the same?

2023-09-07

Why are oil prices different? Are their costs the same?

Usually, we look at the same type of engine oil, such as SP grade, and the price is different. For example, 0W-30 is more than 20 more expensive than 5W30. If it's not the same type of engine oil, the price is even more different, such as SN and C5. So what is the difference in oil prices?


More than 85% of the engine oil is base oil. Therefore, the quality of base oil is one of the important factors determining the price of engine oil.


At present, there are a total of five types of base oils in engine oil. Among them, Class I and Class II are mineral oils, corresponding to the grade of mineral oil or semi synthetic oil, Class III is synthetic oil, but essentially mineral oil, and corresponding to the grade of semi synthetic oil or synthetic oil. Class IV (PAO) and Class V (esters) are synthetic oils, and the corresponding oil grade is synthetic oil. The larger the base oil category, the higher its process, the better the performance and durability of the engine oil, and the higher its cost.


So, this is the main factor contributing to the price difference between fully synthetic oil, semi synthetic oil, and mineral oil.

The fact that 0W-30 is more expensive than 5W30 is that 0W requires the addition of higher-level anti-condensation agents to ensure better low-temperature fluidity, so its price is higher. The price difference between SN and C5 is also the same. They use different base oils, additives, and formulas, so the price naturally varies.


OEM certification oil prices also vary. OEM certification is the automotive manufacturer's own standard for oil quality, often based on industry standards and OEM needs, additional targeted tests are added to ensure that their engines have the best performance.

Some manufacturers have strict requirements for engine oil, and obtaining original factory certification requires multiple oil simulation, bench testing, and other tests.

Therefore, if a certain type of oil is certified, the price may be higher compared to non certified oil.


Choosing engine oil does not necessarily mean buying expensive ones, but it is also important to remember to get what you pay for to avoid buying inferior and counterfeit oils.

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