Costco shoppers who count on the warehouse club for affordable do-it-yourself oil changes are facing a double whammy: sharply higher prices and new limits on how much they can buy. According to a report from The Daily Wire, the retailer has raised the price of its Kirkland Signature full-synthetic blend motor oil from a little over $30 for a 10-quart case to $57.99 for the same two five-quart bottles. That case size is enough for a standard V6 or V8 engine.
In addition to the price hike, Costco is now limiting members to one case per transaction and no more than two cases per week, the report said. The restrictions aren’t confined to the store brand. A six-quart case of Mobil 1 now runs $44, and Costco has introduced a five-per-member limit on that product as well.
A Supply Chain Under Siege
The root causes of the price spike and rationing are multiple, but the most significant is the ongoing war between the United States and Iran, which has dramatically slowed the movement of oil through the Strait of Hormuz. The Daily Wire noted that in July, the price per barrel of Brent crude hovered around $72. Since then, it has jumped to $109 as of Monday morning.
The conflict has also severely limited stock. Synthetic motor oils like the Kirkland blend and Mobil 1 depend on Group III base oils, and the United States typically sources about 40% of those oils from the Middle East. With the supply chain moving more slowly due to the war, retailers like Costco have been forced to cap purchases.
Compounding the problem, oil companies have shifted production focus toward diesel and gasoline to capitalize on higher profit margins and meet surging daily demand. That pivot has further constrained the availability of base oils needed for synthetic motor oil.
Pipeline Attack Adds to Pressure
The situation grew more precarious on Friday when a major pipeline in Saudi Arabia was shut down following a drone attack. Andy Lipow, president of Lipow Oil Associates, said a pump station had sustained damage in the strike.
âThe longer the shutdown, the higher the price. Judging from the online pictures, it will take months to repair,â Lipow said.
The pipeline had been serving as an alternate route to avoid shipping oil through the Strait of Hormuz. It remains uncertain whether the pipeline can reopen with a bypass around the damaged pump station.
For Costco members accustomed to scoring cheap oil changes, the days of easy savings appear to be on hold. The combination of geopolitical conflict, infrastructure damage, and shifting refinery priorities has created a perfect storm that is hitting drivers right in the garage.
Source: www.dailywire.com â https://www.dailywire.com/news/costco-just-put-a-limit-on-how-much-shoppers-can-buy-of-popular-item