Costco Starts Rationing Motor Oil. Could Walmart Be Next?
Summary
Costco has started limiting how much of its Kirkland brand motor oil customers can buy, allowing only two boxes per week. This move comes as motor oil prices rise because of higher crude oil costs and supply issues linked to global events.Key Facts
- Costco limited purchases of Kirkland Signature full synthetic motor oil to two boxes per week.
- The price of Kirkland motor oil increased to $57.99 from around the mid-$30s.
- Motor oil is made mostly from base oil, which comes from refining crude oil.
- Rising crude oil prices, partly due to conflicts in the Middle East, are causing motor oil supply to shrink.
- Oil companies are producing more fuel and less motor oil because fuel sales are more profitable.
- Other retailers like Walmart and AutoZone have not introduced purchase limits yet.
- Brent crude oil prices recently rose above $108 per barrel, influenced by attacks in the Middle East.
- Higher production costs and stricter quality standards also contribute to more expensive motor oil.
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