Costco has become the go-to for cheap gas as prices climb in the United States. If you have a Costco membership, you can save 10 to 30 cents per gallon, which can add up to a big difference for some families. Costco also has plenty of other cost-saving vehicle deals, including a 10-quart pack of motor oil as low as $30… But that may be changing.
For those who plan their weeks around journeying to Costco and waiting in line for gas, hold on. The usual $30 price tag has started disappearing. Some Costco members have reported prices as high as $58, which is nowhere near as good of a deal. And now, Costco has started rationing its Kirkland Signature motor oil due to a global shortage.
While the higher pricing is somewhat expected, the cap is not. It’s a surprising move for Costco, known for its bulk sales. For now, members can buy only two units per week. Other motor oil products (not its signature motor oil brand) are around $44 and are capped at five per member.
“That matters most for anyone doing their own oil changes to save money,” Auto Wire wrote in its report. “A DIY full-synthetic change built around a Kirkland twin-pack and a filter now runs close to what many independent shops charge for a synthetic-oil service, narrowing the gap that used to make the driveway worth the trouble. It matters even more for owners of engines with well-documented oil-consumption quirks, where topping off between changes adds up faster than the price of one case suggests.”
The reason behind the Costco motor oil cap
There are only two real reasons that Costco would cap its motor oil: the company isn’t confident that it will have enough motor oil going forward or they don’t want customers to buy all the motor oil they need until the price climbs even higher.
This motor oil shortage was predicted back in May after leaked automaker letters warned of a shortage and questionable adjustments. The culprit? Motor oil prices have been climbing due to a global shortage. Crude oil is currently at over $100 a barrel. This is due to President Donald Trump’s attack on the Middle East, which disrupted the Strait of Hormuz. To put it simply, that’s where most oil comes from.
The motor oil shortage can be traced to a shortage of premium Group III base oils. These are highly refined petroleum products that use full-synthetic and low-viscosity motor oils, used in synthetic motor oil for its better performance qualities. The United States gets these oils from Qatar, UAE, and South Korea. About 44% comes from the Persian Gulf.
Unfortunately, there’s been damage, shutdowns, and delays from the ongoing war. This includes damage to Shell’s gas-to-liquids facility in Qatar that may take until next year to fix.
“Yes, there seems to be a supply shortfall, and the packaging plants are seeing it first, followed by some of the retailers,” said Lipow Oil Associates President Andrew Lipow to The New York Post.
There’s really no solution in sight right now. It feels sorta like everything else that’s been happening around the world. People warn and warn and warn, then it happens anyway. We were told plenty of times there’d be no motor oil. Now, there’s no motor oil. Do the ultra-rich care about that? I doubt it.
I hate to admit it, but it may be time to switch to an EV. I call the Volkswagen ID. Buzz!
