Costco Raises Kirkland Motor Oil Price Amid Ongoing Middle East Tensions

Costco has raised the price of its Kirkland Signature full-synthetic motor oil to around $58 per two-pack, up from approximately $30 last year. This increase comes as crude oil prices continue to rise due to ongoing tensions in the Middle East.

The wholesale club operator is also limiting purchases of the oil to two boxes per week. Additionally, Costco has set a purchase limit on Mobil 1's full-synthetic motor oil 1-quart six pack at five units per membership.

The price hike for synthetic motor oil is attributed to its heavy dependence on Group III base oils, which are mostly made from refining crude oil. The United States imports more than 40% of these oils from the Middle East, where disruptions to oil supplies have been a concern since the start of the Iran war.

The price for a barrel of Brent crude has risen above $109 as fighting in the Middle East continues to squeeze global oil flows. Saudi Arabia's oil pipeline, which was attacked last week, is expected to be out of service for weeks, further reducing oil exports.