Costco Is Rationing Oil and Doubling Its Price as Supply Dwindles
a day ago
- Costco has doubled the price of its Kirkland Signature full-synthetic motor oil from $30 to $57.99 for 10 quarts and is limiting purchases to two per customer per week due to supply constraints.
- The price increase is driven by crude oil trading around $100 per barrel, as refineries prioritize producing fuel (gasoline and diesel) over motor oil for higher profits.
- Geopolitical tensions, including conflicts around the Strait of Hormuz, Saudi Arabia's East-West Pipeline, and the Bab el-Mandeb Strait, are exacerbating global oil supply issues.
- Diesel prices have surpassed $6 per gallon for the first time in history, reflecting the broader impact of oil market disruptions.