Global Shortage Has Led To Motor Oil Rationing At Costco

Changing your own oil has traditionally been one of the easiest ways to save money on car maintenance. For Costco members, Kirkland Signature synthetic oil has made the DIY approach particularly attractive thanks to its relatively low price.

That bargain has suddenly become much less compelling. According to The Auto Wire, a 10-quart case of Kirkland Signature full-synthetic motor oil is now listed at $57.99, up from prices that hovered in the mid-$30 range for years.

The price increase isn’t the only unusual development. Costco has also introduced purchase limits, restricting members to two units every seven days, meaning customers can buy a maximum of 20 quarts during that period.

Motor oil isn’t typically something shoppers expect to see rationed, which makes the restriction noteworthy. The Auto Wire points to tightening lubricant supply alongside the increasingly expensive and complicated process of producing oil that meets modern engine requirements.

Motor Oil Isn’t As Simple As It Used To Be

Today’s lubricants have to cope with turbochargers, direct injection, and increasingly demanding engines while meeting tougher industry specifications. Kirkland’s 5W-30 synthetic, for example, carries General Motors’ dexos1 Gen 3 approval.

Oils carrying that designation must satisfy GM’s testing requirements and licensing program. Modern API and ILSAC standards also require additional testing, including protection against low-speed pre-ignition, which can be particularly problematic for turbocharged direct-injection engines.

That means the oil sitting on Costco shelves is a considerably more sophisticated product than its basic plastic container might suggest. Developing, testing, and certifying those formulations adds costs before the product even reaches retailers.

Supply Is Tightening, Too

The Auto Wire also points to pressure further upstream in the petroleum industry. Base oil used to produce lubricants comes from the same refining system responsible for gasoline and diesel, leaving refiners to balance production according to market conditions.

When transportation fuels offer stronger returns, lubricant base-stock supply can face additional pressure. Those costs eventually work their way through manufacturers and distributors before reaching consumers.

Costco isn’t limiting only its Kirkland product, either. The Drive reports that Mobil 1 purchases are also restricted, although its limit is considerably higher at five units per member.

DIY Oil Changes Are Getting Pricier

The biggest consequence will be felt by drivers who service their own cars. Once a Kirkland 10-quart pack costs nearly $58, adding a quality filter can narrow the price advantage DIY maintenance traditionally held over some independent shops.

The purchase limit is arguably the bigger warning sign. Seeing motor oil rationed at Costco is unusual, and combined with the sharp price increase, it shows just how much pressure the lubricant market is currently facing.