FAQs
Generally speaking, buying gas at Costco is significantly cheaper than doing so at a traditional gas station. The typical driver can save more than $100 per year. Buying gas at Costco can justify a membership all by itself.
Does Costco make profit on gas? ›
The short answer is that unlike pretty much every other retail business that sells gasoline, Costco doesn't care about making money from its gas pumps. In fact, Costco typically sells its gas at a moderate loss. Why would Costco do this? It's not an act of charity.
What is the benefit of getting gas at Costco? ›
Buying gas at Costco can save you money -- typical savings are around $0.20 per gallon. It makes stopping at the warehouse club more convenient -- you can buy groceries and fuel up your car. The higher quality of Costco gas could help your vehicle run more smoothly.
How does Costco keep its gas so cheap? ›
Why is gas so cheap at Costco? The answer is simple: they just have very loyal customers. To purchase their gas, you have to be a member, and membership sales make up about 75 percent of the chain's profit.
What is the best day to get gas at Costco? ›
Gas stations can get busy (avoid weekends)
Avoid weekend fill-ups if you can. Buying gas on a weekend could be a nightmare, as waiting times could take hours. To avoid this, the best time to get gas at Costco is on weekdays between 10-11 in the morning.
What is the best day to buy gas? ›
Buy Gas on Monday or Tuesday
Be strategic about the days you fill up at the pump. “For gas, Mondays and Tuesdays tend to be the cheapest days to fill up your tank as demand is lower at the beginning of the week,” Anderson said.
What company does Costco get its gas from? ›
Q: Where does Costco get its fuel? A: Costco buys fuel from major refineries and distributors in each area. All Kirkland Signature™ Fuel is guaranteed, just like the merchandise we sell inside the warehouse.
Is Costco fuel good quality? ›
Costco fuel stations are well-maintained by our capable attendants so you may be confident that the fuel going into your car is clean. Costco uses fuel filters in the petrol pumps to catch particles or debris larger than 10 microns in diameter. For comparison, the average human hair is seventy microns thick.
What does Costco make most of their money on? ›
The answer is surprising: Costco makes a profit mainly from membership fees. To shop at Costco, one must possess a membership. This permits Costco to do what no other grocery store could previously do, which is sell their items at a price so low that they break even.
Why do so many people use Costco gas? ›
Costco opened its first gas station in 1995 with a commitment to members to provide high quality gasoline at the lowest possible prices. Members will find regular and premium grade fuel – and in some places, diesel. High quality fuel – it's another benefit of a Costco membership.
An executive membership at Costco costs $120 per year, which is twice as much as a basic membership. The primary benefit of the executive membership is scoring 2% back on Costco purchases. Certain purchases don't qualify for cash back, including gas, stamps, and vehicles.
Does Costco give 4 cash back on gas? ›
Costco Anywhere Visa Card by Citi Cash Back Rewards
Earn cash back rewards on purchases wherever Visa® is accepted. You'll get 4% back on eligible gasoline purchases for the first $7,000 per year and then 1% thereafter. You'll also earn 3% on restaurants and eligible travel purchases, including Costco Travel.
Is Costco worth it just for gas? ›
Most recently I saved 38 cents a gallon at Costco compared to the other gas stations in the area. That adds up to me saving a few hundred dollars a year on gas by choosing Costco. Sometimes the lines to get gas at Costco are long, but I can see why. Fortunately, I find they usually move pretty fast.
Why is the Costco gas lines always so long? ›
“Consumers see this as a customer-friendly convenience, but in truth, they help reduce congestion at the pumps, which allows more cars to pass through the pumps, which allows Costco to sell more gas,” says Bines. “It's a win-win, but only because it first benefits the consumer.”
Is it cheaper to buy groceries at Costco? ›
You can often save money by purchasing bulk grocery items at Costco. It's probably unrealistic to do all of your grocery shopping there, since there are apt to be many items you don't need to buy in bulk. You may also find that your local supermarket has a better price than Costco when an item you need is on sale.
Is the Costco membership worth it for gas? ›
Lastly, the gas prices are pretty great at Costco.
Most recently I saved 38 cents a gallon at Costco compared to the other gas stations in the area. That adds up to me saving a few hundred dollars a year on gas by choosing Costco.
Is Costco fuel cheaper? ›
Drivers filling up at Costco will generally save more than £6.50 a tank compared to a supermarket. RAC fuel spokesman Simon Williams said: “Drivers who aren't fortunate enough to be members of Costco will no doubt be horrified to see just how cheaply fuel can be sold.
Do you get 2 cash back on Costco gas with an executive membership? ›
Gas purchases, for example, do not earn you cash back as an Executive member. Neither do cigarette purchases or alcoholic beverage purchases in certain states. Additionally, Costco Shop Cards (Costco's version of a gift card) won't be eligible for cash back, and neither will postage stamps.
Is Costco gas less efficient? ›
If you took the trip miles between fill ups, Costco gas yields a few miles less per gallon (roughly 3-4).