Costco has recently increased the price of motor oil under its Kirkland brand and imposed a purchasing limit due to rising oil costs.
A 10-quart case of Kirkland Signature full synthetic motor oil now costs $58. This is a notable jump from the roughly $30 to $35 range it had maintained for several years.
Moreover, the website indicates that customers can buy a maximum of two cases weekly.
In addition, Costco is also restricting the purchase of a six-pack of Mobil 1 full-synthetic motor oil to five per membership, priced around $44.
Costco was contacted for further comments.
The synthetic motor oil relies significantly on Group III base oils that are derived from refining crude oil. Analysts note that a large portion of these base oils used in the U.S. is imported from producers in the Persian Gulf, where ongoing conflicts have led to supply disruptions.
The price of a barrel of Brent Crude rose beyond $109 as of Monday morning, driven by the continuing disturbances in oil shipments globally.
Since early July, Brent’s price has increased from under $72, reflecting the uncertainty surrounding the restoration of normal oil flow through the Strait of Hormuz.
This increase in oil prices has contributed to a national average for regular gasoline climbing to nearly $4.32 per gallon, up from $4.08 just a month ago and $3.18 a year prior, according to AAA.
Diesel prices in the U.S. also hit a record, exceeding $6 per gallon on Friday. As of Monday, the average for diesel stands at $6.23 per gallon, rising from an average of $5.90 last week.
Typically, diesel and regular gasoline prices closely follow crude oil price trends.
It remains uncertain if other retailers, like Walmart, Amazon, and AutoZone, will adjust their pricing or implement purchasing limits.
