Costco just put a purchase limit on motor oil — here’s what’s going on

Rising prices and purchase limits sparked new concerns tied to pain at the pump, including flashbacks to empty shelves and rationing.

Last week, word began to get around that popular warehouse chain Costco dramatically increased the price of its store brand motor oil. On top of nearly doubling the cost compared to the year prior, members are now being limited to two boxes per week of Kirkland Signature full-synthetic motor oil, as some experts downplayed concern for the average consumer.

The two-pack of 5 quarts rose from roughly $30 to about $58, as documented by The Auto Wire; at the same time, purchase limits were instituted for Kirkland Signature oil and Mobil 1’s full-synthetic motor oil 1-quart six packs—restricted to five per member.

Speaking with Nexstar, GasBuddy head of petroleum analysis Patrick De Haan contended the impact of purchase limits on the average consumer was minimal as, “The normal car requires four to five quarts every 5,000 miles or so.”

He described the limit as “what would be an extremely reasonable amount” for those who don’t maintain “a fleet of thousands of cars.” While others joined in downplaying the potential of an oil shortage, it remains that different types of oil come from different suppliers for different uses.

“What we do know is that Qatar, UAE, and Korea provide what is known as Group III Base Oils,” explained Lipow Oil Associates president Andrew Lipow to the New York Post. “They are used in synthetic motor oil and synthetic blends of motor oil and have superior performance qualities.”

“Yes, there seems to be a supply shortfall, and the packaging plants are seeing it first, followed by some of the retailers,” he went on as the Independent Lubricant Manufacturers Association details that more than 40% of Group III base oil for the U.S. comes via the Persian Gulf.

ADVERTISEMENT

With the price of a barrel of oil climbing over $100 again, De Haan noted, “As you would expect, everything derived from a barrel of oil is being impacted in different ways.”

Late last week, President Donald Trump addressed the conflict with Iran that has been a major contributing factor in the rising prices, contending, “They are trying to hold out as long as they can to complicate the election, but I think people are wise to it because Iran cannot have a nuclear weapon. It’s very simple.”

Meanwhile, an attack recently shutdown a Saudi pipeline impacting as much as 4% of the world’s oil supply at the same time the president was calling on Ukraine to cease strikes on Russian fuel infrastructure.

In addition to concerns about home heating costs climbing over 30% compared to last winter, the oil market found many remembering lines for gas in the ’70s and barren shelves and fear-based shortages at stores during COVID.

ADVERTISEMENT

ADVERTISEMENT
Kevin Haggerty

Comment

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the ∨ icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.

Latest Articles