Getting an oil change will cost you more. The price has increased since the war with Iran began.
“It started out about 8 percent when our suppliers first let us know it was going to go up,” said Carl Hughes at Roswell Auto Center after learning about about a spike in motor oil prices in the weeks following the start of the conflict with Iran.
“It’s probably increased up to about 15 percent.”
Chris Gaffney with Georgia Tech’s Supply Chain and Logistics Institute said the closure of the Strait of Hormuz is only part of the problem. A key production plant was damaged in a bombing, further limiting supply
“In the case of motor oil, there’s one plant in Qatar that is one of two places in the world. It makes a lot of the really special stuff that goes in newer oils,” said Gaffney. “That plant will not come back online for a year, and that plant in particular actually produces the molecules that go into the newer synthetic oils and ingredients in those oils from natural gas.”
“There’s also a plant in South Korea that has the same capabilities, but they’re impacted because they need the inputs that come from the Gulf of Hormuz,” Gaffney said.
The disruption to supply has increased costs throughout the industry. At Roswell Auto Center, Hughes says they’ve had to pass the higher costs on to drivers.
“It’s increased an oil change anywhere from $10 to $15,” Hughes said.
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