Base Oil Landed Cost Guide: Beyond the Supplier Price

Base oil landed cost is a buyer-controlled calculation that brings the supplier offer together with transport, destination and local-delivery inputs. It should use current quotations and the buyer’s applicable customs advice. This guide describes cost categories; it does not provide live prices, duties, taxes, freight or port charges.

Fix the comparison basis

Before calculating, record the product, quantity basis, packaging, currency, named place and Incoterms rule. Use the same unit and exchange-rate policy for each offer. The FOB, CFR and CIF guide helps separate included and excluded responsibilities.

Build the cost layers

• Supplier price and explicitly included origin services.
• Main carriage and insurance where they are the buyer’s responsibility.
• Bank, inspection or document costs that the contract assigns to the buyer.
• Destination terminal, document release, handling and storage items quoted by the relevant providers.
• Import duty, tax and regulatory charges confirmed by qualified local advisers.
• Local transport, discharge, empty-equipment return or packaging recovery where applicable.

Ask the Global Shipping team for the current transport scope and use the Price Center only for its retained current-price purpose.

Model uncertainty without inventing numbers

Keep unconfirmed items visible as “quote required.” Record the source date, currency and validity for every input. Run scenarios only with buyer-approved assumptions and do not present them as supplier commitments. The destination-port checklist (Coming later) helps identify responsibilities that can create additional cost.

Compare alternatives on the same delivered basis

Packaging can change handling and local infrastructure needs, so consult the packaging comparison (Coming later). Product family selection remains with the technical and commercial owners: Group II, Group III and Bulk Supply.

Return to the Base Oil Procurement Guide.