Costco Rationing Motor Oil Amid Global Shortage and Persian Gulf Disruptions

Costco has begun rationing its Kirkland Signature full-synthetic motor oil due to a global lubricant supply crunch. The shortage is tied to the disruption of Persian Gulf shipping, which has pushed prices sharply higher.

A 10-quart box of Kirkland Signature full-synthetic oil, previously priced as low as $30, now costs $58 on Costco's website. To manage demand, Costco is limiting members to one transaction and a maximum of two units every seven days for this specific product.

The shortage has been compounded by refiners prioritizing gasoline and diesel production over lubricant base stocks, squeezing supply of the feedstock used to make motor oil. The disruption to Gulf base oil supply routed through the Strait of Hormuz has also contributed to the shortage, as the US imports a substantial share of its Group III base oil from Persian Gulf producers.

Two automakers have already warned of dwindling motor oil stock, raising concerns about availability for both consumer purchases and dealership service departments. Costco's rationing is notable, given that the retailer rarely imposes purchase limits outside of emergency conditions such as natural disasters or pandemic-driven demand spikes.