- Costco raised its Kirkland Signature full synthetic motor oil to $57.99 and is limiting customers to two units every seven days.
- Costco is also rationing some Mobil 1 motor oil, limiting six-quart cases to five per member.
- Link between the price increases and shortages to sharply higher crude oil prices driven by the U.S.-Iran conflict.
- Brent crude is up roughly 60% and West Texas Intermediate about 80% year to date, while U.S. gasoline prices have also climbed substantially.
- Barron's argues that rising gasoline prices could become politically significant in the midterm elections, noting historically larger House losses for the incumbent party when gas prices rise.
https://www.barrons.com/articles/costco-motor-oil-6a560c5b
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Get in Line. Costco Is Rationing Motor Oil.
By Andy Serwer
Did you see that Costco Wholesale is rationing and massively raising prices for motor oil? The Auto Wire, which broke the story, reports that the retailer made the move with its Kirkland Signature full synthetic motor oil.
The 5-quart, two-bottle case now lists for $57.99, up from a price that hovered in the mid-$30s for years. Costco has also imposed a purchase limit, capping buyers at one transaction per membership and two units every seven days.
Between 80% and 90% of motor oil is made of base oil, a product obtained by refining crude oil.
Costco is also limiting at least one other petroleum-based product. Sales of a six-quart case of Mobil 1 are capped at five per member.
Costco didn't respond immediately for comment. So far, other major retailers, such as Walmart, haven't followed Costco's lead.
The move may have something to do with soaring oil prices, which have risen because of the U.S.-Iran conflict. Brent crude and West Texas Intermediate are up roughly 60% and 80%, respectively, year to date.
Gas prices are also sharply higher. The average price of a gallon of gasoline has risen 33.5% since Trump's inauguration on Jan. 30, 2025, according to the U.S. Energy Information Administration. The average price is now just under $4.30 per gallon, according to the EIA.
Rationing and higher prices for motor oil is one thing, but soaring gasoline prices could have major implications for the coming midterm elections. According to Politico, the incumbent party has lost an average of 21 House seats in midterm elections dating back to 1978. During election cycles when gas prices rise, that average loss increases to 32 seats.
Back in June, Trump ordered the Justice Department in a social media post to investigate large oil companies he accused of gouging drivers.
The situation has even prompted comparisons with the U.S. gasoline shortages of the 1970s, when fuel was rationed based on whether a vehicle's license plate ended in an odd or even number. The last such rationing occurred in 1979. One of that year's biggest songs was Gloria G-ynor's "I Will Survive" - perhaps an appropriate song to queue up again.