Costco Rations Kirkland Motor Oil, Raises Price
Costco Rations Kirkland Motor Oil, Raises Price

The News
Costco is rationing motor oil. The warehouse chain has raised the price of its exclusive Kirkland Signature motor oil and capped how much of it customers can buy in a week, as crude prices climb again and supply of refined lubricants tightens nationwide.
ZeroHedge reported the cap in plain warehouse language: "Item 997930 has a maximum order quantity of 2."
The restrictions turned up at some locations this week, according to Raw Story, and were confirmed in reports by The Independent, the Daily Mail and Newsweek on Sunday and Monday.
Why Motor Oil
Newsweek reported that refiners now make more money turning crude into gasoline than into lubricants — a margin gap that can squeeze motor oil supply even when crude keeps flowing.
Timeline
Raw Story reports that Costco has imposed unusually strict limits on motor oil purchases at some U.S. locations, under the headline "The rationing has begun."
ZeroHedge reports Costco is rationing Kirkland Signature motor oil, citing a per-member maximum order quantity of two on item 997930.
Newsweek reports the rationing and asks whether Walmart could be next, pointing to refiners' preference for gasoline over lubricants.
The Daily Mail reports Costco is restricting purchases as supply dwindles nationwide and prices surge higher.
The Independent reports Costco has both raised the Kirkland motor oil price and set a weekly purchase limit as oil prices climb again.
Reactions
Raw Story described "widespread fears" among readers that the oil price surge — which it tied to the U.S. war against Iran — is only the beginning, and quoted commentary saying "the rationing has begun."
Newsweek framed the move as a warning shot for the rest of retail, raising the prospect that Walmart follows with limits of its own.
The Daily Mail cast it as a consumer story: one of Costco's most popular products, suddenly capped, at a higher price.
Costco has not issued a public statement in the reporting gathered by Wire beyond the purchase limit posted on the item itself.
What's Next
Watch whether other big-box retailers — Walmart chief among them, per Newsweek — impose their own limits, and whether Costco extends the cap chainwide or raises the Kirkland price again.
The underlying variable is crude. As long as prices keep climbing and refiners keep favoring gasoline, the lubricant squeeze that produced this cap does not ease.
More
Kirkland Signature is Costco's private label, and its motor oil is one of the chain's best-known value products — which is exactly why a two-unit cap lands as a shock rather than a footnote.
The story crossed the political spectrum fast: it was carried within a day by outlets rated left, center-left, center-right and right, from Raw Story and The Independent to Newsweek, the Daily Mail, Citizen Free Press and ZeroHedge.
Poll
Is Costco's motor oil cap a sign of a broader shortage coming?
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