Global Motor Oil Shortage Sends Prices Soaring for Costco Shoppers
Costco is rationing its Kirkland Signature motor oil due to a global shortage of premium Group III base oils, a key ingredient in synthetic lubricants. The warehouse giant is limiting customers to two units every seven days as supplies dwindle.
The shortage has sent prices soaring, with a 10-quart pack that once sold for around $30 now fetching nearly $58. Costco's website lists the Kirkland Signature 0W-20 and 5W-20 full synthetic motor oil for $57.99 per two-pack.
The shortage is largely concentrated in Group III base oil, a highly refined petroleum product widely used to make full-synthetic and low-viscosity motor oils. The Persian Gulf region has been a major supplier of this type of oil, but production outages and disruptions caused by the ongoing war in Iran have severely impacted supplies.
The shortage is expected to persist even as shipping conditions improve, with damaged production capacity and depleted inventories taking time to replace.