UPDATE: 2026/09/15 07:15 EST BY DAN CLOUGHER
We put the recent motor oil rations into perspective, and quickly touch on an oil-bypassing alternative.
The global oil supply was hit hard by unrest in the Middle East at a time when it was already under pressure due to the Ukraine conflict. And, sadly, we don’t see signs of the situation improving anytime soon. Prices at the pump are thus continuing to climb, with diesel having recently hit an all-time high then climbed above a nationwide average of $6.
But if you thought expensive fuel was a problem, then you won’t be too happy to learn that things are looking even worse for motor oil. That’s because it’s more profitable for oil companies to refine crude into the stuff that goes inside your gas tank, which has a compounding effect down the supply chain.
Costco Is Now Limiting How Much Motor Oil You Can Buy
Kirkland Signature 5W-30 motor oilCostco
Desperate times call for desperate measures, and skyrocketing prices are no longer the only issue caused by the dwindling oil supply. Apparently, the situation is so dire that Costco started rationing its house brand of motor oil earlier this week, as reported by the folks over at The Auto Wire. Its own Kirkland Signature brand had just about doubled in price over a few short months, with 10 quarts of full-synthetic now costing you $58 compared to just 30 bucks around April.
But now, the US retailer is also putting a weekly cap on how much of that stuff customers can get – no more than two of its five-quart jugs per week. Of course, this won’t be a problem for the average driver, as 10 quarts of engine lubricant will typically last you about a year. It’s not great news for people looking to stock up on it, though, while also painting a gloomy picture of how things are unfolding in the oil industry right now.
Are There Any Other Factors At Play Here?
General Motors Headquarters DetroitGeneral Motors
Limited supply isn’t the only thing to blame for this rapid surge in prices. Higher-than-ever quality standards for motor oil also have a part to play, as they result in a product that is harder to certify and thus more expensive on the shelf. On top of the American Petroleum Institute’s strict guidelines, you’ve also got GM’s Dexos certification, which incurs licensing fees for brands wanting to have their products Dexos-approved.
Not only are these costs passed on to the end customer at least in part, but they further incentivize companies to seek higher profit margins from focusing on gasoline and diesel production instead. And then this loops back around to supply, creating something of a vicious cycle that could eventually spiral out of control.
Why You Shouldn’t Panic
2025 Kia Niro EV – charging portKia
If you run a huge fleet of vehicles which all cover mega miles and oil changes are a day-in, day-out occurrence, then yes, there is a potential that your work-flow might be disrupted, maybe. If, however, you are a regular US citizen with a couple cars on the drive, remind yourself that Costco is rationing your oil purchasing down to a point where you could still complete an oil service on both your cars, once a week. Oh, and that’s just one brand of oil, too.
So, the stuff is not quite gold dust just yet. However, if you are fearful of what the future holds, and only see oil availability – both as motor oil and indeed gas and diesel – shrinking in the near future, perhaps a cheap used EV to get you through the hard times is exactly what’s called for.
CarBuzz Insight – Why This Matters:
We don’t want to be pessimistic, but car owners in America and beyond will likely have to brace themselves for more bad news down the road. There’s no word from Costco on how long its oil rationing is expected to last, and we might even see other retailers implementing similar policies if things don’t improve.
That’s a pretty unnerving scenario to think about, for sure, yet it seems more and more likely as the Strait of Hormuz closure continues to block shipments of around 20 million barrels each and every day. The whole ordeal is starting to look a lot like 1973 all over again, so the question on everyone’s minds is how much longer it can go on like this.
Source: The Auto Wire
