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American Petroleum Institute to up engine oil license fees

American Petroleum Institute to up engine oil license fees
Photo of Jeff Harmening courtesy of API

The American Petroleum Institute (API), based in Washington, D.C., U.S.A., announced that it will raise its EOLCS license fees, effective January 1, 2022.

APIโ€™s Engine Oil Licensing and Certification System (EOLCS) is a voluntary licensing and certification program that authorizes engine oil marketers that meet specified requirements to use the API Engine Oil Quality Marks.

Fee changes effective January 1, 2022

The following fee changes will be effective January 1, 2022, according to the American Petroleum Institute:

(1) new application and license renewal fees will be increased to USD5,500

(2) the volume-of-sale royalty fee will be increased to USD0.0080 per gallon and 

(3) the royalty fee threshold of licensed oil sold will be reduced from 1,000,000 US-gallons to 750,000 gallons. 

When oil marketers renew their licenses in January, they are required to report the volume of the API-licensed engine oils they have sold. All API-licensed engine oil brands, whether sold in packages or in bulk, must be counted in the volume to be reported to API. API will assess USD0.0080 per gallon licensing fee on each gallon reported over 750,000 gallons.ย 

Objective of the EOLCS program

The goal of the EOLCS program is to provide the highest level of quality and service to the worldwide lubricants industry.

โ€œThe increase in fees helps to enhance EOLCS and continue to provide this valuable service to the industry in the long term,โ€ according to Jeff Harmening, senior manager โ€“ EOLCS/DEF/MOM.

In July 2019, the API Lubricants Standards Group approved the adoption of two new ILSAC specifications, GF-6A and GF-6B, and a new API Service Category, API SP. The two new ILSAC specifications represent the latest performance requirements for gasoline engine oils set by the International Lubricant Specification Advisory Committee (ILSAC), and API Service SP, the newest API gasoline engine oil standard.  

All three of the standards can be licensed under APIโ€™s Engine Oil Licensing and Certification System beginning May 1, 2020.

The American Petroleum Instituteโ€™s (API) latest diesel engine oil standards, API CK-4 and FA-4, began appearing in the marketplace on licensed products and marketing materials on  December 1, 2016, following the earlier approval by the APIโ€™s Lubricants Group of these new specifications to address the varying needs of engine technologies โ€“ aging, new, and in use, both on and off-highway โ€“ and to help diesel engine manufacturers meet more stringent emissions requirements, particularly in the United States.

API engine oil specifications are the most commonly used and recognized as the minimum performance requirement for gasoline and diesel engine oils in the Asia-Pacific region.