Costco Cracks Down on Motor Oil Sales Amid Global Supply Chain Disruptions

Costco is rationing its motor oil supplies and doubling the price due to the surge in crude oil prices. The wholesale retailer has increased the cost of its Kirkland Signature full-synthetic motor oil from $30 for 10 quarts to $57.99, and customers can now only buy two per week.

The high demand and low supply have led to a price increase that is nearly double what it used to be. Motor oil manufacturers are facing challenges in meeting the demands of refineries due to its production costs, which include rigorous testing, higher standards, and licensing fees for certain automakers' branding.

The global supply chain is facing disruptions due to conflicts in the Middle East, including the war between the U.S. and Iran over the Strait of Hormuz, and satellite imagery showing smoke near Saudi Arabia's East-West Pipeline. The price of diesel has reached a record high of $6 per gallon, with an 8-cent increase from yesterday.