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Costco is now limiting motor oil purchases to two cases per member every seven days, a move that signals how serious the current lubricant shortage and price surge have become across the United States. Shoppers who once relied on cheap, bulk oil at Costco are now facing higher prices and strict rationing.
The retailer’s popular Kirkland Signature full-synthetic motor oil, which used to sell for about $30 per 10-quart case, is now listed at $57.99 online. This sharp price hike has shocked many customers and reflects wider disruptions in the global supply chain for lubricants. The shortage is linked to ongoing conflicts in the Middle East. Nearly half of the Group III base oils needed for modern synthetic motor oil are sourced from Bahrain, the United Arab Emirates, and Qatar. Recent military tensions with Iran, including a damaging airstrike on Qatar’s Pearl GTL facility in March 2026, have cut off key exports and crippled a major portion of global production for at least a year.
With Middle Eastern supply chains disrupted, South Korean refiners have tried to fill the gap, but they are also struggling to secure crude oil. Meanwhile, refineries are prioritizing diesel and jet fuel production due to record-high profit margins, putting more pressure on lubricant supplies.
The impact is not limited to Kirkland products. Name-brand oils like Mobil 1 are also being rationed, with a five-case weekly limit per member.
Modern synthetic oils require advanced chemical formulations to protect engines and meet strict environmental standards. Licensing and testing fees, such as General Motors’ Dexos approval, add to production costs, which are now being passed along to consumers. The price jump and rationing are especially challenging for drivers who perform their own vehicle maintenance, making DIY oil changes less cost-effective than before.
There is no clear timeline for when supplies and prices might return to normal. Industry experts suggest that as long as global tensions and refinery profit priorities continue, shoppers can expect ongoing limits and high prices for motor oil at Costco and other retailers.