Costco Cuts Synthetic Motor Oil Sales Amid Price Spike
Costco has capped sales of its Kirkland Signature synthetic motor oil in Connecticut due to rising prices, which have more than doubled since late summer. The oil now costs $58 for a five-quart container, up from $30 just a few weeks ago. Despite the price hike, Costco's synthetic motor oil still comes in below what many competitors charge, including major retailers like Walmart and BJ's Wholesale Club.
The price increase is part of a broader trend of rising oil prices, which have been driven by geopolitical tensions, particularly with Iran's nuclear ambitions. The Energy Information Administration reported on Monday that the spot price for a barrel of crude oil was $97.26, although it had reached as high as $101.26 in March.
Costco's decision to limit sales of its synthetic motor oil may be driven by concerns about inflationary pressures and the potential impact on its members' budgets. The company has implemented price cuts for certain products, such as frozen wings and chocolate-covered almonds, but has not yet lowered prices on its motor oil.
Costco operates eight locations in Connecticut and has seen same-store revenue increase 6.8% in August from a year earlier, excluding gasoline sales and foreign exchange rates. The company is set to report its results for the 2026 fiscal year ending in August in the next few days.