Auto Rental News
MenuMENU
SearchSEARCH

Re-Refined Oil: How Quality and Pricing Compare to Virgin Oil

Re-refined oil is now certified by the American Petroleum Institute and recognized as equivalent to virgin oil by leading auto rental companies in the industry, yet only 10% of used oil is re-refined each year.

by Staff
December 28, 2011
4 min to read


Re-refined oil is starting to gain a much greater presence in the auto industry, and major auto rental companies are partnering with re-refined motor oil providers to close the car care loop and make sustainability a priority.

In the past, fleet managers didn’t allow use of re-refined oil in maintenance operations based on concerns about product quality. A study funded by the California Integrated Waste Management Board in 2006 found that the majority of fleet managers surveyed held that opinion.

Ad Loading...

However, the finished product is an American Petroleum Institute (API) approved Group II base oil that is equivalent in quality and price to most virgin oils, which suggests its lack of use is partially due to misinformation about the product.

Re-refined oil is used motor oil that gets cycled twice through a refining and blending process. Oil simply gets dirty; therefore, the re-refining process restores the damaged product through a chemical pretreatment, followed by a distillation process that removes all contaminants. A refiner then hydro-finishes the oil, a procedure that eradicates any remaining impurities. Lastly, the refiner puts it into a blender that combines the re-refined oil with a fresh additive package.

“There are obviously environmental relations associated with using re-refined materials — and a lot of large companies have sustainability efforts — but companies also have new vehicles and they have to protect their engines,” said John Wesley, CEO of Universal Lubricants, a closed-loop provider that collects spent motor oil in their own trucks, re-refines it, and then sells it back to the marketplace. “Our re-refined oil meets all the OEM requirements and is API certified. You must meet certain specifications to get the API seal on your material, and recycled materials don’t get any special waivers.”

Some companies have caught on to this trend, utilizing Universal Lubricant’s services to do the job. Regardless, only 10% of the 1.3 billion gallons of used oil is re-refined each year.

In the original days of oil re-refining, dirty oils were ran through a sock that removed some heavy particles; however, it did not create a usable product for vehicles. But now, with the advent of hydro-treating capabilities — such as high heat and pressure, and the ability to introduce hydrogen into oil — refineries are finally able to create a product comparable to virgin-produced base oils.

Ad Loading...

“I’d say you’re able to create a better product than virgin because you’re starting with a better product on the front end,” Wesley said. “Crude oil by its very nature is extremely nasty — only 2% of a barrel of crude ultimately winds up as base oil. Re-refined oil skips that starting [stage] with a cleaner initial product.”

One of the first auto rental companies to partner with Universal Lubricants was Enterprise Holdings, which started using this re-refined oil in May 2011.

Universal Lubricants collects the spent motor oil of Alamo Rent A Car, Enterprise Rent-A-Car and National Car Rental vehicles and proceeds to re-refine the waste fluid, thereby transforming what was once unwanted discharge into its API-certified Eco Ultra high-performance motor oil. This green motor oil then circles back into rental fleet cars and light trucks, completing a self-sustaining cycle that repeats itself over and over again. 
According to Wesley, just like the re-refined oil’s quality, the price is equal to the price of virgin motor.

“All things being equal and all things being the quality of the product, the specifications that it meets, the price points, the service level … Enterprise is not paying a premium for this product,” Wesley says.

The majority of used oil is either improperly disposed of or burned as an industrial fuel and is gone forever, both of which are damaging to the environment, according to Wesley. Universal Lubricants and Enterprise Holdings are working together to reverse this trend. And they’re doing it without sacrificing quality or coinage. 

Ad Loading...

Universal Lubricants has further plans to offer its recycled products in the retail market as well. “It’s our understanding and our hope that this gains a foot hole in the retail environment, and that products like Eco Ultra will find their way onto the shelf,” Wesley said. “Retailers are all about giving customers a choice, and when all things are equally priced, I think we’ll see customers moving toward a green product.”

Universal Lubricants got its start in 1929 and has spent many years improving its oil refining technique, making it more efficient and environmentally friendly, while keeping up with new technologies that make recycling oil possible.

More Green Fleet

Sid on stage at ICRS in front of four white chairs.
Rental Operationsby Martin RomjueJune 2, 2025

Survey: New Tech Tools, Sharper Pricing Plans, and Focused Service Can Improve Rental Car Industry

ICRS 2025: What are key trends, challenges, and opportunities confronting rental car operators this year?

Read More →
Rental Operationsby News/Media ReleaseFebruary 13, 2025

Green Motion Adds South Korea to Its Asian Service Region

The first Green Motion locations in South Korea are scheduled to open in key travel hubs during the coming months, including Seoul, Jeju, and Busan International Airports.

Read More →
Image of a sign that says "Electric Vehicle Only" in front of charging vehicles.
Green Fleetby Elora HaynesFebruary 10, 2025

Federal Highway Administration Halts EV Charger Funding, Delaying National Expansion Plans

The FHWA has rescinded funding for the NEVI Formula Program, delaying nationwide EV expansion as policies undergo federal review.

Read More →
Ad Loading...
Green Fleetby Martin RomjueJanuary 22, 2025

Operator Outlook: EVs Slow to Charm Rental Car Industry

2025 ARN Fact Book: Electric vehicles still must prove their reliability and worth in a fleet sector that puts rolling metal on the ground 24/7 for a demanding customer base.

Read More →
Green Fleetby News/Media ReleaseJanuary 21, 2025

Green Motion Opens Franchise in Germany’s Most Populous State

The rental car outlet brings its hybrid and electric vehicles and sustainable approach to business to one of Europe’s most economically powerful regions.

Read More →
Fleet Acquisitionby News/Media ReleaseJanuary 14, 2025

U.S. EV Sales Push to Record 1.3 Million in 2024

Domestic sales of EVs benefitted from strong incentives from the automakers, excellent lease deals, and federal and state incentive programs.

Read More →
Ad Loading...
Green FleetJanuary 9, 2025

Electric Vehicles Still Destined to Succeed

2025 ARN Fact Book ACRA Column: The technology, lower costs, and energy improvements of future electric vehicles will make them too good to turn down. Rental fleets should prepare now.

Read More →
Rental Operationsby News/Media ReleaseJanuary 8, 2025

4 Global Trends in Carsharing for 2025

Despite operational challenges and questions, the global car-sharing market continues growing and will likely double during the next decade.

Read More →
Rental Operationsby News/Media ReleaseDecember 18, 2024

Green Motion Appoints Master Franchise for New Zealand

The provider of green vehicles expands its sustainable car rental options further into the APAC region.

Read More →
Ad Loading...
Fleet Acquisitionby News/Media ReleaseOctober 11, 2024

EV Transaction Prices Ease Down in September

Electric vehicle sales also mark another record in Q3, thanks to higher incentives and more choices.

Read More →
Ad Loading...