Why Oil Costs are Impacting Your Label Prices: A Look Behind the Scenes at the Global Supply Chain Reality

Jason Foss By Jason Foss

When a price increase lands in your inbox, it’s natural to wonder: Why now? Why us? What changed? At InTouch Labels & Packaging, we believe you deserve straight answers, not excuses. So we’re pulling back the curtain on what’s actually happening in the label and packaging industry right now, and why quality printing partners everywhere are reassessing their costs in April 2026.

The Perfect Storm: Two Massive Disruptions Hitting Simultaneously

If February and March of 2026 felt chaotic in the printing industry, there’s a good reason. Two major supply chain shocks have collided at the worst possible moment.

Comodity chart showing the price spike of Brent Crude Oil from January 1, 2026 to April 2, 2026
Commodity chart showing the price spike of Brent Crude Oil from January 1, 2026, to April 2, 2026

First: Rising Energy Costs and Geopolitical Pressures

Global crude oil dynamics have shifted dramatically in early 2026. According to the U.S. Energy Information Administration, Brent crude is currently at $110 per barrel, with most economists expected to average around $85 per barrel in 2026, with substantial volatility expected throughout the year. Energy markets experienced sharp spikes in late February and March, driven by geopolitical tensions affecting global supply chains

Why does this Matter to you?

Nearly everything we use to make your labels, from the plastic films (PE, PP, PET) to the adhesives to the energy powering our presses, is either made from or dependent on petrochemical feedstocks. When oil prices spike this dramatically, those costs ripple through the entire value chain within weeks, not months.

HP Indigo 8 digital label press running metalic PET Liner next to industrial rolls of white BOPP liner,

Second: Chemical and Resin Price Surges

The petrochemical resin market is experiencing significant pricing pressure across the board. According to Plastics Technology’s market analysis, PE, PP, PS, and PVC resin prices all shifted upward in early 2026, with suppliers implementing price increases across the board. The primary drivers are:

  • Higher feedstock costs: Crude oil, propylene, benzene)
  • Supply/demand: Rebalancing as producers adjust output
  • Increased operating costs from energy inflation

For label manufacturers like InTouch, these cost increases directly flow through to our production expenses, and passing them along responsibly helps us maintain quality and service levels.

Petroleum-based laminate being applied to PET liner digitally printed roll labels on a die cutting machine at InTouch Labels & Packaging.

What This Means in Real Numbers

Let’s ground this in specifics. A sample of 2026 cost pressures across the label industry:
PP resin (used in many label films): +7.4% to +18.3% depending on the month
PET resin: +2.1% to +13.6%
PE resin: Up to +43.5% (April projection)
Natural gas (for plant operations and resin production): +51% year-over-year (2025) and +12.1% projected for 2026
Shipping/logistics: LTL freight is up 7.7% year-over-year (2025); container rates surged 18.8% in late March. Drewry’s World Container Index surged 18.8% in late March, reaching $2,279 per 40-foot container

You’re not seeing this just at InTouch. On March 18, 2026, FUJIFILM Europe announced a global double-digit price increase for printing plates and plate chemicals, citing “continued rises in the cost of raw materials as well as other related elements, including logistics and labor”. Across the printing and packaging industry, price adjustments are becoming the norm, not the exception.

What separates InTouch from the pack is this:

We’re being transparent about why we’re doing it, and we’re committed to protecting your value.

What We’re Doing to Minimize Your Impact

Price increases are never easy, but here’s how we’re managing the situation:

  1. Absorbing What We Can: While we can’t absorb double-digit increases in material costs, we’ve implemented operational efficiencies and lean manufacturing practices to limit what we pass through to you.
  2. Tiered Pricing for Loyalty: Long-term customers and high-volume partners will see phased increases rather than all-at-once jumps. We reward loyalty because we value the relationship.
  3. Material Flexibility: If your label spec can shift slightly, to a compatible film or adhesive that’s tracking more stable. We’ll work with you to find a cost-neutral path forward. No hidden surprises later.
  4. Continued Speed & Quality: Our 3–5-day turnaround upon proof approval on the East and West Coast remains non-negotiable. We’re not compromising speed to offset cost.
  5. Transparency, Going Forward: We monitor market data from the U.S. Energy Information Administration, Drewry’s logistics indices, and Plastics Technology market reports, and we’ll share forward-looking signals when we see them coming. If resin prices stabilize, or energy costs moderate, we’ll adjust pricing accordingly. This street runs both ways.

The Bigger Picture: Why This Matters

Supply chain transparency and honesty build trust. When a customer understands why a price has risen, and can see that their partner isn’t just pocketing the margin. They’re more likely to stick around and invest in the relationship, even through a difficult quarter.

What Comes Next

If 2026 is the year of supply chain stress, 2027 is projected to be the year of stabilization. Lilli Manolis Sherman, a contributing editor of Plastics Technology Magazine, wrote a compelling article titled, “April 2026: Volume Resin Prices Mostly Up; Uncertainty Looms.” Resin costs are expected to ease due to U.S. redirects, but they will not fully replace Middle Eastern supply. Container shipping may normalize as geopolitical tensions cool.

We’re here for the long haul, which means we’re pricing for the reality of now. Not betting on a quick fix that might not come.

The Bottom Line

We’re not asking you to like a price increase. We’re asking you to understand it. And then, to keep counting on us to deliver the same partnership that’s kept your labels printing on time and looking great.

Questions? Let’s talk. Reach out to your InTouch account team to discuss how these changes affect your specific label spec, and to explore any options we can offer to keep your costs manageable. We’re here to solve problems, not create them.

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