Costco has begun rationing its house brand motor oil, limiting purchases to two boxes a week. This comes as drivers continue to face increased gas and diesel prices.
The warehouse club, known for bulk discounts, raised the price of Kirkland Signature full synthetic motor oil. Previously priced in the mid-$30s, the 5-quart, two-bottle case now costs $57.99 according to The Auto Wire.
Costco’s website notes a purchase limit of one transaction per membership, allowing a maximum of two units every seven days. The duration of this cap remains unclear.
Other motor oil products are also limited. A six-quart case of Mobil 1, priced at $44, is limited to five per member.
The Auto Wire suggests two reasons for Costco’s purchase cap: concerns about future stock availability and potential price hikes. Newsweek reached out to Costco for comments and is awaiting a response.
Reasons Behind the Rationing
Synthetic motor oil, about 10-20% chemical additives and 80-90% base oil, is derived from crude oil. The recent surge in oil prices, influenced by the conflict in Iran, has impacted motor oil production as companies prioritize fuels like petrol and diesel.
The resulting supply constraints increase prices from manufacturers to retailers. Stringent quality standards for motor oil add to the production costs.
This situation is challenging for consumers attempting DIY oil changes. Costco’s rationing reflects a broader trend of increasing costs.
Oil prices have risen sharply, with Brent crude exceeding $108 per barrel following geopolitical tensions in the Middle East.
Competitive Pricing
Costco’s competitors have not yet applied similar purchase limits. Walmart sells equivalent-brand synthetic oil at about $32 per 5-quart jug and nearly $64 for a two-pack. AutoZone offers two bottles of Mobil 1 Full Synthetic 5W-30 Engine Oil for $40.99, while Amazon prices one bottle at $31.97 and two at $63.94.
Newsweek contacted Walmart, AutoZone, and Amazon for comments and is awaiting replies.
Costco’s Kirkland oil is a low-cost option compared to premium brands, contributing to the decision to limit purchases and deter stockpiling and resale.
Contact Newsweek editors for the story: Ben Kelly and James Debens.