Costco hikes Kirkland motor oil price and caps weekly purchases
Costco increased the price of its Kirkland Signature full-synthetic motor oil and limited customers to two packs per week, while also restricting sales of Mobil 1 synthetic oil amid rising crude prices.
Costco announced a price increase for its Kirkland Signature full-synthetic motor oil, with a two-pack of 5-quart containers now selling for about $58, up from roughly $30 a year earlier. The retailer also limited purchases to two boxes per member each week. In addition, the wholesale club capped sales of Mobil 1 full-synthetic 1-quart six-packs at five units per membership.
The adjustments come as global crude oil prices have risen sharply, with Brent crude trading above $109 a barrel following supply disruptions linked to recent conflict in the Middle East. Analysts note that synthetic motor oil relies heavily on Group III base oils, a significant portion of which the United States imports from the region.
"The rise in oil prices has helped send the average cost of a gallon of regular gasoline across the country to nearly $4.32 from $4.08 a month ago and $3.18 a year ago," said a spokesperson for the American Automobile Association.
Diesel prices have also climbed, reaching an average of $6.23 a gallon, according to the same source. Industry observers suggest that higher crude prices may prompt oil companies to focus more on gasoline and diesel production, which command larger market demand than motor oil.
Costco did not respond to a request for comment, and other motor-oil retailers such as Walmart, Amazon and AutoZone have not yet indicated whether they will adjust prices or impose similar limits.