Costco raises motor oil prices and limits sales amid supply shortages

Costco has implemented significant price increases and purchase limits on its Kirkland Signature brand synthetic motor oil. The price for a two-pack of 5-quart full-synthetic oil has risen to approximately $58, nearly doubling from the $30 price point seen last year. To manage inventory, the retailer is limiting customers to two boxes per week.

The shortage is primarily driven by a lack of Group III base oils, which are high-quality lubricant feedstocks essential for modern full-synthetic oils. Supply constraints are exacerbated by refineries prioritizing high-margin transport fuels, such as diesel and jet fuel, over lubricant streams.

Industry data indicates that overall motor oil prices increased by an estimated 24.2% between February and August. These rising costs and supply disruptions contribute to broader inflationary pressures, complicating efforts by the Federal Reserve to reach its 2% inflation target.