Costco Raises Motor Oil Prices Amid Soaring Global Crude Costs
Costco has increased the price of its Kirkland Signature full-synthetic motor oil to around $58 per two-pack, up from approximately $30 last year. The wholesale club operator is also limiting purchases to two boxes per week.
This move comes as the global price of crude oil continues to rise due to ongoing tensions in the Middle East. Brent crude prices have jumped above $109 per barrel, with estimates suggesting that the United States imports over 40% of Group III base oils from the region.
The price increase has also affected other motor oil retailers, with Costco limiting purchases of Mobil 1's full-synthetic motor oil to five six-packs per membership. The average cost of a gallon of regular gasoline in the US is now nearly $4.32, while diesel prices have soared past $6 per gallon.
As oil companies focus on producing more profitable fuels like diesel and gasoline, it remains to be seen whether other motor oil retailers will follow Costco's lead by increasing prices or setting purchase limits.