Costco Slashes Engine Oil Purchases Amidst Global Supply Crunch

Costco is limiting purchases of engine oil as prices surge due to a combination of factors. The retailer has imposed a two-per-customer, per-week cap on its Kirkland Signature full-synthetic motor oil, which now costs $58 for 10 quarts. This represents a significant increase from just weeks ago, when the same product could be had for as low as $30.

The price hike is attributed to a shrinking global supply of motor oil, which is often produced alongside gasoline and diesel in refineries. With demand remaining strong and refiners prioritizing the production of fuels over lubricants, the squeeze on the motor oil market has become more pronounced.

Additionally, the increasing complexity of modern engines requires more sophisticated oil chemistries to handle smaller engines running bigger boost while minimizing environmental impact. This shift has brought about more rigorous testing and higher standards, including the American Petroleum Institute's guidelines that took effect at the start of the decade.