Costco hikes motor oil prices to almost double its usual rate, and even worse, they are now rationing it with a measly weekly limit

Costco has officially implemented strict purchase limits on motor oil as prices for the product climb significantly, CNBC reports. If you are planning a trip to the warehouse club to stock up on supplies for your next oil change, you will need to prepare for both higher costs and restricted inventory.

The retailer is now enforcing a limit of 1 transaction per membership, with a maximum of 2 units every 7 days for its popular Kirkland Signature full synthetic motor oil. This specific product, which comes in a two-pack of 5-quart bottles, is seeing a major price jump. It is now retailing for $57.99, which is a massive increase from the typical price point that usually hovers near $30.

You will also find similar constraints on other brands. Mobil 1 motor oil is currently listed on the Costco website with a limit of five per membership. This 6-pack of 1 quart bottles is priced at $43.99. It is clear that Costco, which is famous for its bargain prices and bulk-friendly philosophy, is feeling the pressure of the current market. Representatives for Costco did not immediately respond to requests for comment regarding these changes.

These shifts are happening because the market for products based on crude oil is becoming increasingly hot

On Monday morning, Brent crude, the global oil benchmark, traded above $109 per barrel. This reached levels not seen since May after the benchmark saw a 9 percent gain the previous week. West Texas Intermediate futures also traded above $104 per barrel. By the time markets closed on Monday, Brent crude settled at $105.68 a barrel while West Texas Intermediate settled at $101.39 a barrel.

The supply chain issues are largely tied to ongoing conflict in the Middle East. Saudi Arabia was forced to close its key East-West oil pipeline last week after drone attacks launched from Iraq caused damage to parts of the infrastructure. This instability in the region is creating a ripple effect that is hitting consumers where it hurts.

The situation is further complicated by how refineries are choosing to operate. Because the oil supply is tightening, refiners are seeing stronger profits by focusing on finished fuels like gasoline and diesel.

These refiners are currently prioritizing fuel production over base oil, which is the essential component needed to manufacture modern synthetic motor oil. This shift in production focus is directly contributing to the limited supply and the resulting price hikes you are seeing on the shelf.

This broader trend is impacting more than just your garage maintenance. The conflict has pushed gas and diesel prices higher across the United States. We have seen gasoline reach a Labor Day record, and U.S. diesel prices have hit a record high above $6 per gallon.