Costco Raises Motor Oil Prices Amid Global Oil Price Surge
Costco has raised the price of its Kirkland Signature full-synthetic motor oil from around $30 to approximately $58 for a 5-quart two-pack. The warehouse club is also limiting customers to buying just two boxes per week.
The company is not alone in increasing prices, as Mobil 1's full-synthetic motor oil 1-quart six pack now costs about $44 and has a purchase limit of five units per membership.
According to Patrick De Haan, head of petroleum analysis for GasBuddy, the price hike and limits are unlikely to impact most consumers. He noted that a normal car requires only four to five quarts of oil every 5,000 miles, making the limit 'what would be an extremely reasonable amount.'
The increased prices and purchase limits at Costco are indicative of a larger trend: high oil prices. De Haan attributed this to various factors, including attacks in the Middle East, the Red Sea, and the East-West Crude Oil Pipeline in Saudi Arabia, as well as Ukrainian drone attacks against Russian oil refineries.
The price for a barrel of Brent crude has reached its highest level in months, exceeding $109 on Monday morning. As a result, prices at the pump for regular gasoline have also risen, with a national average of $4.31 per gallon as of September 14th, according to AAA. Diesel fuel has set a record, with a national average of $6.23 per gallon.
De Haan suggested that oil companies may be profiting more from turning refined crude oil into diesel or gasoline than motor oil due to the rising prices of crude oil.