Costco Raises Motor Oil Price Amid Soaring Crude Costs
Costco has raised the price of its exclusive private-label motor oil, Kirkland Signature full-synthetic motor oil 5-quart two pack, to around $58. This is a significant increase from approximately $30 it had been selling for just last year.
The wholesale club operator is also limiting purchases of this product to two boxes per week. Additionally, Costco is capping the purchase of Mobil 1's full-synthetic motor oil 1-quart six pack at five units per membership, which sells for about $44.
The price hike comes as Brent crude oil has reached over $109 per barrel due to ongoing tensions in the Middle East. The region is a major supplier of Group III base oils, which are used in synthetic motor oil production. As a result, oil companies may shift their focus towards refining crude oil into more in-demand products like diesel and gasoline.
The average cost of a gallon of regular gasoline has risen to nearly $4.32 from $3.18 a year ago, while diesel prices have hit a record high at $6.23 per gallon on average.