Costco Limits Synthetic Motor Oil Sales Amid Price Surge
Costco is limiting sales of synthetic motor oil in Connecticut as prices jump due to increased demand and supply chain disruptions. The warehouse club giant's Kirkland Signature brand synthetic motor oil has seen a near-doubling in price, from $30 to $58 for ten quarts.
This is the latest blow to consumers who are watching oil prices climb and trying to avoid service station costs. Despite the increased price, Costco is still offering a better deal compared to other retailers like Walmart and BJ's Wholesale Club.
The company has reportedly imposed a cap of two purchases per week for synthetic motor oil, possibly driven by the fact that its price still beats many competing options. This move may be in response to consumers looking to stock up ahead of expected higher prices this fall due to potential disruptions in oil supply chains.
Costco's CEO Ron Vachris noted in a recent presentation to investors that the company is closely monitoring the impact of higher oil prices on inflation and tariffs, and its buyers are working to reduce price impacts for members.