Costco Raises Engine Oil Prices Amid Base Oil Surge
US-based retailer Costco has increased the price of its private-label synthetic engine oil and introduced purchase limits. The cost of a 10-quart pack of Kirkland Signature full synthetic engine oil now stands at $58, up from an unspecified previous price. Additionally, customers are limited to buying one pack per transaction and can only make two transactions per week.
The move is seen as a sign of pressure on the engine oil supply chain, with rising base oil prices contributing to the increase in costs. Base oil prices have surged by more than threefold since the outbreak of war, according to Amanda Hay from market research firm Independent Commodity Intelligence Services.
Analysts point out that the United States is a net importer of base oil, which is used to produce synthetic engine oil. The country's structural supply and demand issues are also exacerbating the problem, with refiners potentially reducing output in response to higher fuel production profits.
The increased cost of engine oil could highlight the difference between electric vehicles and internal combustion cars in terms of vehicle maintenance costs. While plug-in hybrids and extended-range electric vehicles require engine oil changes due to their internal combustion engines, battery electric vehicles do not need engine oil replacement.