Costco Slams Brakes on Kirkland Motor Oil Purchases Amid Crude Price Surge

Costco has increased the price of its Kirkland Signature full-synthetic motor oil to $58 per two-pack, up from around $30 last year. The wholesale club operator is also limiting customers to purchasing two boxes a week. This move comes as Americans face high grocery prices and inflation worries.

The price hike is due in part to the ongoing tension in the Middle East, which has disrupted oil supplies. The United States imports more than 40% of its Group III base oils from the region. Brent crude oil prices have climbed above $109 per barrel, contributing to higher motor oil costs.

Other motor oil retailers may follow suit, as Costco's actions are likely aimed at limiting losses due to high demand for diesel and gasoline. Oil companies tend to prioritize producing these fuels over motor oil, given their greater global demand and daily volume.