Costco Jumps on Oil Price Hike, Cuts Motor Oil Purchases
Costco has increased the price of its exclusive Kirkland Signature full-synthetic motor oil to $58 for a two-pack, up from approximately $30 last year. The wholesale club is also limiting purchases to two boxes per week.
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, and Saudi Arabia's main oil pipeline will be out of service for weeks following an attack last week.
As a result, motor oil retailers like Costco may struggle to meet demand as consumers increasingly opt for diesel and gasoline over motor oil. The average cost of regular gasoline in the US has risen to nearly $4.32 per gallon, while diesel prices have reached a record high of $6.23 per gallon.