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Costco Is Rationing Oil And Doubling Its Price As Supply Dwindles
Jalopnik • • business
Key Points:
- Costco is raising the price of its Kirkland Signature full-synthetic motor oil from $30 to $57.99 for 10 quarts and limiting purchases to two per customer per week due to rising crude oil prices around $100 per barrel.
- The price surge is driven by refineries prioritizing fuel production over motor oil, more complex oil formulations for modern engines, and licensing fees from automakers.
- Geopolitical tensions, including the U.S. and Israel conflict with Iran, threats to Saudi Arabia's East-West Pipeline, and Houthi control of the Bab el-Mandeb Strait, are exacerbating oil supply concerns.
- Diesel prices have hit a record high of $6.06 per gallon, reflecting ongoing supply disruptions and increased demand, with no immediate relief expected.
- Former President Trump predicts that gas and oil prices will not decrease until after the midterm elections in November, indicating continued price pressure in the near term.
