The American Petroleum Institute has advised all API Engine Oil Licensing and Certification System (EOLCS) licensees that effective December 15, 2015, it has increased licensing fees to offset implementation cost for the forthcoming diesel engine categories, likely to be named API CK-4 and API FA-4, expected to be introduced in late 2016. New applications and each annual renewal will increase from $3,000 each to $4,000 each.
In a letter from Kevin Ferrick, Manager, Engine Oil Licensing and Certification for API, he noted that the application and renewal fees are per license, not per engine oil. For example, if an oil marketer submits an application for one oil, the application fee is $4,000. If the marketer submits an application for more than one oil, the application fee is still just $4,000. In addition, each gallon in excess of 1,000,000 gallons will incur a fee of $0.0070, up from $0.0050 previously.
Ferrick stated that at time of annual license renewal, licensee must report volume of API-licensed engine oil sold. API assesses $0.0070 per gallon fee on each gallon reported in excess of 1 million gallons. All API-licensed engine oil brands, whether sold in packages or in bulk, must be counted in the volume reported.
Ferrick said the increased fees will allow API to draw more samples to audit performance claims of marketers, publish and regularly update an API unlicensed list, and take more action against nonconforming oils. From 2009 to 2014, API found as high as 19 percent of the bulk oils it tested failed to meet API service category requirements. These were bulk samples purchased from oil-change locations that likely believed they were receiving quality oils.
Licensed oils display one or both of API's quality marks: the "starburst" certification mark signifies that an oil meets the latest standard developed by the International Lubricant Specification Advisory Committee (ILSAC), which represents American and Japanese automakers; the "donut" indicates an oil that meets the companion API specification that is similar to the ILSAC spec but includes fuel economy requirements
APIs donut service symbol starburst certification mark
Benefits from API licensing include association with the 2016 campaign; independent verification of the quality of licensed oils sold in the marketplace; listing in the real-time on-line Directory of EOLCS licensees; participation in programs to ensure precision of new tests used to qualify oils; and rights to use the API quality marks (the API Service Symbol Donut and Certification Mark Starburst), symbols of quality that identify licensed engine oils to consumers. This includes using the marks on licensed oil packages, in media, and on promotional materials.
