Costco Motor Oil Prices Soar Amid Global Supply Pressures
Costco has nearly doubled the price of its Kirkland Signature brand synthetic motor oil to just under $58 per two-pack, according to its website. This increase is part of a broader trend in rising prices for synthetic motor oil due to global supply pressures and disruptions in the oil market.
The price hike comes as crude oil prices have spiked 49% since the start of the war in Iran, forcing manufacturers to pay more for base oils made from refined crude. As a result, local auto shops are paying hundreds of dollars more for supplies, with some owners reporting increases of $350 to $400 per drum.
Industry experts attribute the shortage to damage to Middle East refineries that produce the chemicals used in motor oil, combined with higher prices for crude oil needed to make those chemicals. Manufacturers are competing against each other to purchase the same product, making it difficult to secure supplies.