The cost of Costco’s Kirkland Signature motor oil has skyrocketed, with customers now facing purchase limits due to the turmoil in the global refining market.
The Auto Wire, an auto news website, reported that the price of a 10-quart package of Kirkland full-synthetic oil has doubled to around $58, up from $30, with customers now limited to purchasing two packages per week.
Costco’s online sales platform reflects this new restriction, with an alert message appearing when attempting to order more than two packs.
MotorBiscuit, another auto blog, delved into the refining crisis, attributing the supply chain disruption to military conflicts and damage sustained by key production facilities.
The ongoing geopolitical tensions have led to a surge in profit margins for diesel and jet fuel, prompting refiners to prioritize these lucrative markets over essential base oils like motor oil.
With modern engines requiring advanced oil chemistries to function properly and meet environmental standards, the current squeeze on raw crude supply is exacerbating the situation, leading to potential shortages on the shelves.
It’s not just motor oil that’s affected; households dependent on heating oil may also face steep price hikes as winter approaches, exacerbated by record-high retail diesel prices.
The impact of these market dynamics is particularly challenging for traditional fuel users, while electric vehicle owners remain unaffected by the turmoil.