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Why is a local businessman charging more for oil changes? By watchdog in Watchdog January 6, 2009

If you read the latest installment of "Watchdog" you know one Advocate reader is upset about the spike in local oil-change prices.

The column publishes Wednesday in print, but is already online and  viewable by clicking here. (Be sure to read the entire story for the truth about a local ad that is tricking some readers).

A local woman complained the price jumped from $30 in April to about $42 in December - even though the cost of a barrel of oil dipped in recent months.

She faxed a copy of her December bill, which supported her beef. The oil changes were performed at Courtesy Car Wash, 7102 N. Navarro St. I called Jerry Roddy, the owner.

Roddy told me he first increased his price by $5 in August - a month in which oil and gas prices spiked - and then again by another $5 to offset yet another cost spike.

"We have to do it to stay in business. Every cost went up," he said. "We're locked into what Shell charges us for the oil."

Roddy's cost per quart increased by 51 percent last year, he said. The price he charges you, though, increased by 33 percent.

"You can see that we have not increased our prices at the rate of the increase in our cost," Roddy said.

A call to Pete's Kwik Lube, Zarbock's Automotive & Transmission and Acu-Tune show local oil-change prices vary - $18.48, $28.95 and $40 respectively.

My best advice? Shop around for prices. And remember, costs vary depending on the type of oil you buy - Castrol or Penzoil, for example - and the number of quarts your vehicle requires.

Roddy then e-mailed a formal letter to me. Here is his unedited letter in its entirety:

========================================================

December 31, 2008

From;

Jerry Roddy

Courtesy Car Wash

Shell Rapid Lube

7102 North Navarro

Victoria, Tx. 77904

Gabe,

Here is a comparrison of the cost that we pay to Shell for oil and the retail prices that we charged to our customers for a full service lube for last year.

Our average cost for a quart of Shell oil from December 1, 2007 and December 1, 2008  increased by 51.0%.

Our retail price for a basic oil change has only increased by 33.4%

You can see that we have not increased our prices at the rate of the increase in our cost. If we had raised our price at the same rate that our cost increased we would be at a much higher price for an oil change.

We are just as concerned as everyone about the continued increases at both cost and retail that we have seen over the year not only in oil but in all products. As a bonus to our customers we offer a full service car wash, $11.95 value, at no additional charge to our oil change customers. The car wash is offered as an expression of appreciation to our customers for their continued support and loyalty.

On December 1, 2008 we received a notice from Shell that they are reducing the cost that they charge to their dealers by 5% across the board. As we start to receive product at the new lower prices our customers can expect a reduction in the price they pay for an oil change. Im sure Shell will continue to reduce the cost of their products as their inventories reflect the lower crude oil prices. As they do so we will be able to reduce our prices even more.

Thanks for your concern and thanks for giving me the opportunity to share this information with your readers.

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