Costco Rations Motor Oil Amid Global Refining Crisis and Supply Shortages

Key Facts

1Costco has begun limiting sales of Kirkland Signature motor oil to a maximum of two packages per week per customer.

2The price of Kirkland motor oil has doubled from approximately $30 to $58 due to supply shortages.

3Airstrikes on the Pearl GTL facility in Qatar have crippled a major portion of global production.

Amid global energy and supply chain disruptions, Costco has implemented purchase limits on its Kirkland Signature motor oil, restricting customers to just two packages per week. This decision follows a significant price surge, with costs doubling from approximately $30 to $58 due to acute supply shortages. According to reports, the scarcity is largely attributed to airstrikes on the Pearl GTL facility in Qatar, which have crippled a substantial portion of global production capacity.

The crisis highlights a broader shift in the refining sector, where facilities are prioritizing high-margin diesel and jet fuel over motor oil base stocks. These supply constraints are further exacerbated by geopolitical tensions in the Strait of Hormuz, which have restricted raw material availability. Per market data, these dynamics reflect mounting inflationary pressures within the energy sector that are now directly impacting major retail supply chains and consumer pricing strategies.

In the equity markets, COST shares stood at $918.574 (close September 14, 2026), having traded between a day high of $921.64 and a low of $910.79. Investors are closely monitoring retail health following the BRC Retail Sales Monitor data released on September 7, which showed a lower-than-expected growth of 0.5%, signaling potential headwinds for consumer-facing stocks as supply issues persist.