Costco Hikes Motor Oil Prices Amid Ongoing Middle East Tensions

Costco has raised the price of its Kirkland Signature full-synthetic motor oil to $58 for a 5-quart two pack, up from around $30 last year. The wholesale club operator is also limiting customers to purchasing only two boxes per week.

The move comes as oil prices continue to climb due to tensions in the Middle East. Brent crude oil prices have risen above $109 per barrel, while diesel prices in the US hit a record of $6.23 per gallon on Monday.

Costco's decision may be influenced by the fact that motor oil production is heavily dependent on Group III base oils, which are mostly made from refining crude oil. The US imports more than 40% of these oils from the Middle East, where disruptions to oil supplies have been ongoing since the start of the Iran war.