Costco Raises Kirkland Motor Oil Prices Amid Gulf Supply Disruptions
Costco Wholesale Corp has nearly doubled the price for its Kirkland Signature full-synthetic motor oil, from around $30 to $58 per 10-quart pack. The move is attributed to a shortage of Group III base oil, which accounts for about 44% of U.S. imports and comes largely from the Persian Gulf. A March airstrike on a Qatari facility has disrupted supply, while refiners are prioritizing diesel and jet fuel production due to higher profitability. Costco's decision highlights its business model’s vulnerability compared to rivals like Walmart and Amazon that offer broader product selections. Costco relies heavily on private-label products and operates with limited inventory options, making it more susceptible to input shortages. The company has also imposed purchase limits for Kirkland Signature motor oil packs due to the scarcity. Costco is set to report earnings on September 24, which will be a key indicator of how its low-price bulk model is faring amid ongoing supply chain challenges.
