Clean Harbors, a leading provider of environmental, energy and industrial services throughout North America, today announced that its Safety-Kleen subsidiary and all of its waste oil collections businesses are upwardly revising their pricing related to managing the collection of used engine and industrial oils. Effective immediately, Safety-Kleen is increasing the cost of its charge-for-oil (CFO) program across its used oil collection network, as well as increasing its service stop-fee for its stop-fee program. The CFO increases will range up to 70 cents per gallon depending on certain market factors and will apply to all gallons collected.
Craig Linington, EVP of Safety-Kleen Oil, said, “These rate changes are the necessary result of two major external conditions affecting our business. First, the new IMO 2020 regulation, which took full effect on March 1, requires more than 60,000 oceangoing vessels to transition from a 3.5% sulfur fuel oil to a 0.5% sulfur fuel oil. This regulation is severely limiting the outlets for used motor oil and waste fuels generated across North America and globally. The regulation is also materially depressing the value of many of our re-refined byproducts. Second, the coronavirus is creating major disruptions in the crude and base oil markets, driving significant price declines and unpredictable demand for both.”
Oil Plus+ customers, who purchase Performance Plus re-refined finished lubricants as part of Safety-Kleen’s closed loop offering, will be considered for exemption from this price change.
Linington concluded, “We believe these rate changes are needed for Safety-Kleen to be fairly compensated for our collection services and to enable us to continue to deliver the safe, reliable and quality service we provide to more than 200,000 customers throughout North America.”
