Costco nearly doubles Kirkland motor oil prices while implementing purchase limit
Costco has increased the retail price of motor oil sold under its store brand while also restricting how much customers can purchase weekly as global oil prices continue to rise once again.
Drivers seeking to save money by purchasing motor oil to complete their own vehicle oil changes may view the move as another financial strain, while already dealing with elevated grocery bills and widespread concerns over ongoing inflation.
A two-pack of five-quart Kirkland Signature full-synthetic motor oil at Costco now sells for roughly $58, significantly higher than the approximately $30 price point seen last year. The warehouse club is also restricting customer purchases to two boxes per week.
The retail operator has additionally limited purchases of Mobil 1 full-synthetic motor oil six-packs of one-quart bottles, priced at around $44, to five units per membership account.
Costco did not immediately respond to requests for comment.
Modern synthetic motor oil relies heavily on Group III base oils, which are primarily produced through refining crude oil. E
stimates indicate that the United States imports over 40 percent of these oils from the Middle East, where oil supply lines have faced disruptions following the outbreak of the war involving Iran earlier this year.
The price of a barrel of Brent crude rose past $109 on Monday morning as active fighting across the Middle East continues to restrict global oil movements.
A major Saudi oil pipeline will remain largely shut down for weeks after a recent attack, two regional officials informed The Associated Press. The pipeline served as a route for Saudi Arabia to transfer export shipments to the Red Sea, bypassing the Strait of Hormuz in the Persian Gulf where Iranian strikes have halted tanker traffic.
Brent crude has surged from under $72 in early July amid growing skepticism that the United States and Iran will reach an accord permitting commercial oil tankers to safely navigate out of the Persian Gulf through the strait once more.
Escalating crude prices have pushed the national average price for a gallon of regular gasoline to almost $4.32, up from $4.08 a month prior and $3.18 recorded one year ago, based on figures from AAA.
At the same time, U.S. diesel prices reached a new record on Friday, climbing above an average of $6 per gallon. By Monday, costs continued upward to an average of $6.23 a gallon, according to AAA, compared to $5.90 a gallon one week earlier.
Retail pump prices for regular gasoline and diesel consistently track fluctuations in crude oil markets.
As crude prices persist in climbing because of sustained instability in the Middle East, energy corporations gain higher profit margins refining raw crude into gasoline or diesel rather than motor oil. Worldwide consumer demand for gasoline and diesel is significantly larger than demand for engine lubricants, accompanied by substantial daily volumes. Consequently, oil refiners are expected to direct greater operational focus toward fuel production while reducing the output of motor oil products.
It is unclear whether competing motor oil sellers such as Walmart, Amazon, and AutoZone will increase prices or impose limits. Walmart, Amazon, and AutoZone did not immediately respond to requests seeking comment.
