Oil changes are crucial for a car — and getting costly. - MarketWatch photo illustration/iStockphotoThe costs that Americans pay to keep their cars running are about to become more expensive — and it’s not even about gas prices. The price of motor oil is climbing, and that’s making everyday oil changes cost more, according to auto industry experts.Most Read from MarketWatchI inherited a house. My CPA says I should sell within a year to avoid capital gains. Is he right?‘Even better than tech.’ A scramble into this sector is coming, warns veteran wealth manager.Insurance brokers are getting big commissions to keep retirees in Medicare Advantage plans‘It will not bring you happiness’: I have advice for your single, childless 62-year-old multimillionaire readerAdvertisementAdvertisementAnd it’s all happening as the summer travel season starts this Memorial Day weekend. So prepare to pay more for that oil change before the big summer trip. “The timing of it is absolutely horrible,” said Jason Lyon, president of the Preventative Automotive Maintenance Association, a trade group representing a span of national chains, franchisees, regional operators and small businesses providing routine car care. Earlier this year, drivers were paying $80 to $100 for oil changes and routine maintenance, depending on the region and extent of the job, Lyon said. “Now we’re moving toward $100 to $120 and higher.” Americans are sharply aware of their upfront gas costs as the U.S. war with Iran continues. Spiking motor-oil costs show the conflict is impacting the necessary back-end costs too. It’s not what drivers want to hear when loan payments and insurance premiums already make car ownership pricey. Not to mention fuel costs. AdvertisementAdvertisementA gallon of gas is now $4.53, on average, up from $4.04 a month ago, according to AAA. When drivers were filling up for Memorial Day last year, they were paying $3.18 per gallon. Meanwhile, the diesel fuel that powers the trucks hauling car parts — plus all sorts of consumer goods and produce — is $5.65 a gallon, up from $3.53 a year ago. Crude oil prices CL00 have jumped since passage through the Strait of Hormuz has slowed to a trickle. Motor oil’s key ingredient is a certain base oil that’s a byproduct of crude oil, Lyon explained. Most of the refineries for this type of base oil are clustered in the Middle East, he said. PAMA’s members said their suppliers hiked prices in April, and again in May. The first hike was 50 to 75 cents per gallon and the second hike ranged from $2 to $4 per gallon. Suppliers for the businesses within include companies such as Chevron CVX, Exxon Mobil XOM, Phillips 66 PSX and Castrol, according to Lyon. AdvertisementAdvertisement“We’re past the point of being able to absorb. The industry has already started price increases for consumers,” Lyon said. The companies did not immediately respond to requests for comment. “You’re seeing some small/low-level issues for now” with availability, Patrick De Haan, GasBuddy’s head of petroleum analysis, told MarketWatch. The first trouble spots include oils with special weights and manufacturer additives, he said. “I don’t think it’s a major situation, but another highlight of the strait being blocked.”Car maintenance is big business. Americans paid approximately $73 billion for oil changes and general automotive repair in 2024, according to Michael Chung, senior director of market intelligence at the Auto Care Association, a trade group. At this point, “consumers have been trying to save money, or not spend more, in auto maintenance,” he said. But steeper prices on a repair invoice will make that difficult. AdvertisementAdvertisementIn a service station’s bill, roughly 55% goes to parts and 45% pays for labor, according to Chung. In conversations across the industry, Chung has also heard of cost-pressured businesses that have to pass higher prices on to consumers. For example, the supply of Group III base oils for synthetic oils is “challenging” and will only worsen if the Strait of Hormuz doesn’t open soon, a chemical manufacturing company told Chung, who said the company told him prices are increasing weekly. Chung said a Virginia repair shop told him it is readying a likely 10%-20% price hike on services and is seeing customers delaying maintenance that they can put off for now. Since the Iran war’s start, Lyon said more drivers have been falling behind on their oil changes by a month or two. He’s heard that from members and seen it personally, as chief operations officer of Benny’s Car Wash, a car-wash and oil-change business in the Baton Rouge, La., area.AdvertisementAdvertisementIt spotlights the jam drivers face now. They can’t skip the gas station when prices are high — but they can postpone routine care. However, big-ticket repairs may occur sooner if everyday maintenance is delayed too long. Car engines need clean motor oil to lubricate parts, remove debris and prevent overheating. Drivers shouldn’t go more than a year between oil changes, according to David Bennett, senior repair manager at AAA. Drivers with conventional oil should change it every 5,000 miles. Mixes that blend conventional and synthetic oil should change every 6,000 miles. Synthetic oil can be changed every 10,000 to 15,000 miles, he said.Drivers will likely continue to face harder choices on their car budgets. “Starting now through the next several seasons, if supply is constrained, it’s going to find its way to the consumer in increased prices due to lower supply,” Chung said.Myra P. Saefong contributedMost Read from MarketWatchMy husband took out a $100,000 Parent PLUS loan for his daughter. She dropped out, citing mental-health issues. Should we refinance?A majority of stocks are falling, but the S&P 500 has kept climbing. The divergence is reaching record levels.‘I experienced many years of poverty’: I worked until 70. Why do wealthy retirees look down on those with less savings?
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