Costco Just Put A Limit On How Much Shoppers Can Buy Of Popular Item

Drivers who typically opt for the driveway oil change to save a few bucks may soon find that the savings aren’t adding up the way they used to.

Club retailer Costco recently increased the price of its generic synthetic motor oil blend — Kirkland Signature full-synthetic blend. The price jumped in recent months, from a little over $30 for a ten-quart case (enough for an oil change on a standard V6 or V8 engine) to $57.99 for the same two five-quart bottles. In addition, Costco is limiting members to one case per transaction and no more than two cases per week.

And it’s not just the store brand feeling the pinch: a six-quart case of Mobil 1 runs $44, and the retailer has introduced a five-per-member limit on that item as well.

The reasons for the price jump — and the limited stock — stem from a number of factors, not the least of which is the ongoing war between the United States and Iran and the dramatically slowed movement of oil through the Strait of Hormuz. In July, the price per barrel of Brent crude was around $72. Since then, the price has jumped to $109 as of Monday morning.

In addition to the increased prices, stock has also been severely limited as a result of the continued conflict in the region. Synthetic motor oil like the Kirkland blend and Mobil 1 rely on Group III base oils — and the United States typically relies on Middle Eastern sources for about 40% of those oils. Slower movement along that supply chain, caused by the ongoing war, has forced retailers like Costco to limit what customers can buy.

Limited stock has also been impacted by oil companies that have shifted production focus to diesel and gasoline in order to make the most of much higher profit margins and meet the much higher daily demands.

Further complicating matters, a major pipeline in Saudi Arabia was shut down on Friday after a drone attack. Andy Lipow, president of Lipow Oil Associates, said a pump station had sustained damage in the attack.

“The longer the shutdown, the higher the price. Judging from the online pictures, it will take months to repair,” he said.

The pipeline was being used as an alternate route to avoid shipping oil through the Strait of Hormuz, and it remains to be seen whether the pipeline will be able to reopen with a bypass around the damaged pump station.