A worldwide shortage of motor oil is intensifying, with prices for Group III base oil nearly quadrupling since February to a record $12.45 a gallon. US retailer Costco Wholesale has raised the price for 10 quarts of full synthetic motor oil to $57.99 and capped purchases at one per customer. Walmart reports low stocks for several brands.

Jiffy Lube CEO Mauricio Quezada cited spot outages due to supply chain disruptions. The crisis stems from an Iranian strike in March damaging Shell’s gas-to-liquids plant in Qatar, a key Group III base oil producer, and ongoing tanker shipment hindrances in the Strait of Hormuz. Valvoline CEO Lori Flees said prices will remain “higher” for four to six months until Strait of Hormuz flows normalize.

Independent shops like Rapid Lube in New Jersey, owned by Mike Tailor, describe obtaining supplies as “hit or miss,” with prices far exceeding past highs like $5 gasoline in 2022. GM acknowledged difficulties in securing Dexos-spec oil for newer vehicles, working with suppliers to maintain supply. Base oil exports remain a small fraction of the global oil market at ~350,000 barrels daily.