Minnesota Auto Shops Raise Prices Amid Global Oil Market Disruptions

Turbo Tim's auto shops in Minnesota are raising prices on services like oil changes due to increased costs. The shop absorbed losses for nearly six months before increasing prices by 20-30% five months ago, according to store manager Troy Muchow.

The price hike is tied to disruptions in global oil markets since the US war with Iran began in February. About 20% of the world's petroleum supply passes through the Strait of Hormuz, a key shipping route out of the Persian Gulf.

Turbo Tim's uses around 300-400 gallons of motor oil per week but has been struggling to receive even half that amount due to supplier shortages, forcing them to find alternative suppliers.

Lubrication specialist Lake Speed Jr. said refineries are prioritizing diesel fuel production over synthetic-based oil because it yields higher profit margins.