Costco Just Put a Purchase Limit on Its Motor Oil As Prices Surge

Key Points:

• Costco has imposed strict purchasing limits on motor oil, capping Kirkland Signature full-synthetic oil at two 10-quart boxes per customer per week and Mobil 1 at five six-quart cases, due to a severe global lubricant shortage.
• Prices for motor oil have nearly doubled, with Kirkland's 10-quart box rising from $30 to $58 and Mobil 1 six-quart cases priced at $44, reflecting supply constraints rather than corporate greed.
• The shortage stems from geopolitical tensions, including a military conflict with Iran and the blockade of the Strait of Hormuz, which have disrupted exports of Group III base oils from key Persian Gulf producers.
• Damage to Qatar’s Pearl GTL facility from Iranian airstrikes in March 2026 has further crippled global synthetic oil production, while South Korean refiners struggle to secure crude oil to compensate.
• Refiners are prioritizing production of diesel and jet fuel due to record-high profit margins, reducing motor oil output, and high licensing fees for modern engine oil certifications add to the supply challenges, resulting in scarcity and higher prices for consumers.