Costco Wholesale has begun rationing motor oil at its stores and charging just over 61% more for its motor oil products than it did nine months ago.
Costco’s 2-pack of 5-quart Kirkland Signature 5W-30 Full Synthetic Motor Oil costs $57.99, compared to $35.99 in December.
Another motor oil product, the 2-pack 5-quart Kirkland Signature 5W-30 High Mileage Full Synthetic Motor Oil, is listed on Costco’s website for $57.99, but previously cost between $35.99 and $36.72.
The retailer has also capped certain motor oil products at two per customer. When customers try to buy some motor oil products, a notice pops up and says: “(This product) has a maximum order quantity of 2.”
At some Costco locations, there is a limit of one transaction per membership and a limit of two units every seven days, according to car industry news outlets The Auto Wire and The Drive, which first reported on the cost change.
USA TODAY contacted Costco on Sept. 14 for comment, but did not receive an immediate response.
Why Is Costco’s Motor Oil Getting More Expensive?
Here’s what we know about the shortage, why it’s happening and what this means for Costco members.
Costco’s recent price increase for motor oil fuel products comes amid multiple oil industry pressures, including the American Petroleum Institute’s standards that went into effect in 2020, which require oils to pass seven new lab tests, The Auto Wire reported.
Costco’s Kirkland motor oil also bears the dexos1 Gen 3 label, meaning it is General Motors certified; therefore, it has been independently tested against the global automaker’s protocol and officially licensed, which costs Costco money, according to The Auto Wire.
Oil shortages also impact Costco’s price increase. To make motor oil, refiners blend base oil, which comes from the same barrel of crude oil as gasoline and diesel. Because fuel is typically more profitable than motor oil, refiners can earn more profit by converting crude oil into gasoline and diesel, according to The Auto Wire.
What Does the Price Increase Mean for Drivers?
The reported motor oil shortages and price increases have led customers to wonder what this means for businesses that perform oil changes and how the move will impact their own wallets.
“Just wait till this hits the oil change shops,” wrote one Facebook user.
Rob Benson, a Colorado-based content creator who shares emergency preparedness and survivalist tips online, warned customers on May 20 that it was time to get motor oil while it was still cheap or discounted.
“Disruptions are coming because of a certain war of choice,” Benson said in a May 20 video he shared on Facebook, alluding to the ongoing war in Iran that began in February. “Stock up on your make and model’s motor oil and use it within five years.”
He also urged customers who want to store motor oil long-term to buy sealed quarts of synthetic products.
In an updated Sept. 13 Facebook video, he said the price increase is “not a dramatic thing.”
“You can still get oil, but this is another indicator,” Benson added.
What Else Is Blamed for the Motor Oil Price Increase?
Really American, a Washington, DC-based super PAC, alleged in a Facebook post on Sept. 13 that President Donald Trump’s war with Iran is the reason for the motor oil price increase.
“Trump dragged the country into a war with Iran, and now the consequences are showing up on store shelves,” the committee wrote. “Costco isn’t alone. Mobil 1 is now capped at five units per member as well … This is what happens when Trump’s war halfway around the world starts showing up in your own driveway.”
The committee also referenced Trump’s vow to decrease oil prices for Americans.
“Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace,” Trump wrote in a March 8 Truth Social post. “ONLY FOOLS WOULD THINK DIFFERENTLY!”
Saleen Martin is a reporter on USA TODAY’s trending team. She is from Norfolk, Virginia – the 757. Email her at [email protected].
Reporting by Saleen Martin, USA TODAY / USA TODAY
USA TODAY Network via Reuters Connect
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