Retail Giant Raises Motor Oil Price, Caps Customer Purchases As Iran War Drags On

Costco is rationing motor oil and nearly doubling the price of its Kirkland Signature product as turmoil in global oil markets during the Iran war increasingly reaches American consumers.

The warehouse retailer raised the price of a two-pack of five-quart Kirkland Signature full-synthetic motor oil to roughly $58, up from around $30 last year, according to the Associated Press. Costco is limiting customers to two boxes per week and has also imposed purchase limits on some Mobil 1 motor oil products.

“I told you this was a possible consequence of the Strait of Hormuz closure in May. It isn’t just about the reality of the shortage once these stories start publishing,” attorney Antonio Moore wrote Sunday in an X post, referring to the critical oil chokepoint that has been effectively blocked since the Iran war began in February.

Costco’s website lists a limit of one transaction per membership and a maximum of two units every seven days for some Kirkland Signature full-synthetic motor oils, according to the retailer.

“It’s now about runs on oil on top of the actual shortage. That [is] why Costco is implementing rationing. Don’t get caught without enough for an oil change or two to take with your car to the mechanic,” Moore wrote in his post.

The restrictions come as crude oil prices have surged amid disruptions to global energy supplies. Brent crude climbed above $109 per barrel Monday as the ongoing Iran war continued to restrict oil flows and a major Saudi pipeline used to bypass the Strait of Hormuz remained largely shut down following an attack, according to the Associated Press.

Motor oil is produced from the same crude oil refining system that supplies gasoline, diesel and other petroleum products. Refineries have some ability to shift their product mix in response to market prices, though that flexibility is limited, according to the U.S. Energy Information Administration.

The EIA estimates that a typical 42-gallon barrel of crude produces nearly 20 gallons of gasoline and more than 12 gallons of distillate fuel oil, compared with less than half a gallon of lubricants.

Costco did not immediately respond to the Daily Caller News Foundations request for comment.