Costco Raises Prices and Limits Purchases on Kirkland Motor Oil Amid Fuel Crisis
The U.S. fuel crisis has extended to retail shelves as Costco Wholesale (COST) nearly doubles the price of its Kirkland Signature full-synthetic motor oil from $30 to $58 per two-pack, while limiting purchases to two units every seven days per membership. This move reflects severe supply chain disruptions caused by ongoing conflicts in Iran and related attacks on Middle Eastern energy infrastructure. The closure of the Strait of Hormuz and damage to key facilities have drained global oil inventories significantly since February 2026. Rising crude prices, with Brent crude surpassing $109 per barrel and U.S. diesel hitting a record high at $6.23 per gallon, underscore tightening supplies. Motor oil is particularly affected as it relies on the same base oils used for gasoline and diesel production, which refiners are prioritizing due to higher crack spreads. Group III base oil prices have surged 235% since the conflict began. Costco's actions aim to prevent hoarding amid supply uncertainties. Meanwhile, U.S. CPI inflation accelerated to 3.4%, surpassing the Fed’s target of 2%. The Federal Reserve is expected to raise interest rates by 25 basis points on Wednesday in response.
