Costco Jumps on Oil Price Hike Bandwagon with Price Increases

Costco has raised the price of its Kirkland Signature full-synthetic motor oil to $58 per two-pack, up from approximately $30 last year. The wholesale club operator is also limiting purchases to two boxes a week for this product and five units a week for Mobil 1's full-synthetic motor oil.

The price hike comes as global oil prices continue to rise due to ongoing tension in the Middle East. Brent crude oil has surpassed $109 per barrel, while diesel prices in the US have hit a record high of $6.23 per gallon on average.

The increase in oil prices is attributed to supply disruptions caused by the Iran war and an attack on a Saudi oil pipeline that will be out of service for weeks. As a result, oil companies are focusing on producing diesel and gasoline, which have higher demand worldwide, at the expense of motor oil production.