Costco Raises Motor Oil Prices Amid Global Oil Crisis
Amid a global oil crisis, Costco has doubled its prices for full-synthetic motor oil and begun rationing purchases. The Kirkland-branded product now costs $57.99 per case of ten quarts, up from around $30 previously, with customers limited to two cases per week. This shift reflects broader supply chain pressures as crude oil approaches $100 a barrel and U.S. diesel prices cross $6 per gallon. The shortage is driven by declining global oil inventories due to the ongoing conflict between the U.S. and Iran. Base oils used in motor lubricants are being prioritized for fuel production, squeezing supplies of base stock needed for motor oil manufacturing. Costco's Kirkland Signature product faces additional cost pressures from licensing fees tied to GM’s Dexos1 Gen 3 certification. The situation highlights a broader supply crunch impacting retail prices and consumer behavior. The International Energy Agency has revised its global oil forecasts downward due to the crisis, with Chevron CEO Mike Wirth noting that traditional price buffers are now exhausted.
