Costco Wholesale Corp. (NASDAQ:COST) has raised prices on its private-label motor oil and introduced weekly purchase limits, as rising crude oil costs tied to the ongoing conflict in the Middle East ripple through the auto care aisle.
Prices Nearly Double, Purchases Get Capped
Costco’s Kirkland Signature full-synthetic motor oil 5-quart two-pack now costs $57.99, up from roughly $30 a year ago, according to The Associated Press, which first reported on the price increases.
Purchases have been limited to “1 transaction per membership, with a maximum of 2 units every 7 days,” according to Coscto’s product page.
Mobil 1’s full-synthetic motor oil 1-quart six-pack, priced around $44, is now limited to five per membership.
Costco did not immediately respond to Benzinga’s request for comment on the price hikes.
Why Motor Oil Is Getting Squeezed
Motor oil is made mostly from Group III base oils refined from crude, and the U.S. gets over 40% of that supply from the Middle East, which has faced repeated disruptions since the Iran war began in February.
At the time of writing, Brent Crude was up 0.82% at $107.34.
Gas and Diesel Prices Keep Setting Records
The national average for regular gasoline stood at $4.3163 a gallon Monday, up from $4.1505 a week earlier and $3.1752 a year ago, according to AAA.
Diesel hit a new all-time high of $6.2301 a gallon, up from $5.9015 a week earlier and $3.6923 a year ago.
Sen. Elizabeth Warren (D-Mass.) and Sen. Chuck Schumer (D-N.Y.) have both criticized President Donald Trump over rising energy costs, blaming the ongoing war in Iran for the increase.
Trump has said he expects gas prices to fall once the war ends, though he’s acknowledged relief may not come until after the midterms.
It is unclear if other retailers, such as Amazon.com, Inc. (NASDAQ:AMZN), Walmart Inc. (NASDAQ:WMT), and AutoZone Inc. (NYSE:AZO) will also follow Costco’s lead.
The three companies did not immediately respond to requests for comment.
Price Action: On Monday, Costco climbed 1.56% to close at $918.91 and gained 1.49% in after-hours trading.
Benzinga edge rankings indicate Costco’s stock has a Momentum score in the 17th percentile and a Growth score in the 48th percentile
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock/ Dolores M. Harvey
