Synthetic Oil Shortage Forces Retailers to Impose Purchase Limits
A severe shortage of synthetic motor oil has led retailers to impose new purchase limits and hike prices. Costco, a popular warehouse club, has raised the price of its store-brand synthetic oil from about $30 per two-pack last year to $58 this week.
The shortage began in May when refineries shifted their focus towards producing more gasoline. Most synthetic motor oil is derived from the crude oil refinement process, and the US imports over 40% of its supply from the Middle East, where oil flows have been restricted due to the ongoing conflict in Iran.
As a result, the cost of a barrel of oil has surged above $109 this week, pushing diesel fuel prices to new records. President Donald Trump acknowledged that gas prices were 'a little higher' due to the war his administration began in Iran but claimed it was 'a very inexpensive price to pay for what we've done.'