I think you may have gotten a bad batch. While it takes a very long time to go rancid, it can and does eventually (a year or more.) Coconut oil should either smell like a yummy, fresh coconut, or if it is refined, like nothing at all. Take it back to the store if possible and look somewhere else for a good supplier. Eating it should taste just like the coconut flakes in the baking section, except less sweet and much juicier. If you can eat a regular fresh coconut without gagging from dislike, you certainly shouldn't need to disguise the flavor of your coconut oil.
I had this experience recently with flax oil. Last bottle, yummy, nutty, mmmmmmm-good. This bottle -- bitter, gross, nasty. I need to hunt up my receipt (if I still have it) and take the stuff back.