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BackCostco Motor Oil Doubles Price in Half Year, Weekly Purchase Limits
Costco Motor Oil Doubles Price in Half Year, Weekly Purchase Limits
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自由时报39 minutes agoBusiness2 min readChinaView original

Costco Motor Oil Doubles Price in Half Year, Weekly Purchase Limits

Costcocostcokirkland

Quick Look

  • Affected by the situation in the Middle East and the conflict between Russia and Ukraine, global crude oil supply is tight.
  • Costco has implemented purchase restrictions on Kirkland Signature motor oil, with each person purchasing a maximum of two barrels per week.
  • The price of motor oil has nearly doubled in the past six months, with 10 quarts selling for about $58, reflecting the dual pressures of reduced supply and rising costs.

AI-generated summary

Why It Matters

Affected by the situation in the Middle East and the conflict between Russia and Ukraine, global crude oil supply continues to be under pressure, causing gasoline and diesel prices to rise. Even the oil used in car engines is facing dual supply and price pressures.

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Affected by the situation in the Middle East and the conflict between Russia and Ukraine, Costco recently imposed purchase restrictions on its Kirkland Signature private brand motor oil.

Global crude oil supply continues to be affected by the situation in the Middle East and the conflict between Russia and Ukraine. In addition to rising gasoline and diesel prices, even the oil used in automobile engines is facing dual supply and price pressures. U.S. retail channel Costco recently imposed purchase restrictions on its Kirkland Signature private-brand motor oil, with each customer purchasing a maximum of two 5-quart barrels (approximately 4.73 liters) of motor oil per week, reflecting the continued expansion of supply constraints in the global oil industry.

According to foreign media "The Auto Wire", the price of Kirkland Signature fully synthetic motor oil has risen rapidly in recent months. Currently, 10 quarts (about 9.46 liters) sell for about US$58 (about NT$1,840). Compared with about US$30 (NT$950) in April this year, the price has nearly doubled in just a few months.

Please read on...

Costco further limits the purchase quantity, but the average car owner only needs a limited amount of oil for a single maintenance. 10 quarts is usually enough for about 1 year, so the actual impact on the average consumer is relatively limited.

The rise in engine oil prices is not only related to the tight supply of crude oil, but also to the continuous improvement of product quality standards. The increasingly stringent certification requirements of the American Petroleum Institute (API), coupled with the authorization and related fees involved in General Motors' Dexos certification, have increased the cost of engine oil production and certification, and part of the cost is ultimately reflected in the retail price.

For oil companies, refining crude oil into gasoline and diesel is often more economical than manufacturing lubricants, further squeezing the supply of engine oil, forming a cycle of "reduced supply, increased costs, and rising prices." If the global crude oil supply situation does not improve, future car owners will not only face higher refueling costs, but the price of engine oil required for regular maintenance may also continue to rise.

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Keywords

kirkland

Costco

engine oil

Costco

Gasoline and diesel

What to Watch

AI outlook — possibilities, not facts

  • If the global crude oil supply situation does not improve, engine oil prices may continue to rise

    Possible · Within months

Open Questions

  • How long will the purchase restrictions last?
  • Will other retail channels adopt similar purchase restrictions?
  • Will engine oil prices still have room to rise in the future?

Related Topics

Costco
PeopleChen Yingjie
OrganizationsKirkland SignatureThe Auto WireAmerican Petroleum Institute (API)
PlacesUnited Statesmiddle eastRussia-Ukraine conflict area
Topicscostcokirklandengine oilcrude oilsupply chainprice increase
This article was originally published by 自由时报.

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