Here’s Why Costco Gas is So Cheap

 I love Costco and I have always wondered why the Costco gas is so cheap!

Costco Store Front

Not only can I get insanely cheap items in bulk, but I can save a ton while filling up my SUV with gas.

If you haven’t thought of it before, you might now – Just Why is Costco Gas So Cheap? 

costco warehouse sign - costco gas station with cheap gas
How do you make the gas so cheap, Costco?

Well, it’s not by accident and there certainly is a reason for it. Here’s why…

Here’s Why Costco Gas is So Cheap

Costco is known for their amazing bulk pricing and cheap gas but you may not have ever known why they can offer gas for so cheap (well, until now).

Costco Gas Averages Over 20 cents Cheaper

On average, Costco gas costs $0.21 cheaper per gallon than competitors and that is a huge difference when you are looking to save without the need to rack up fuel points. (Source)

How Does Costco Do It?

So, why is that? How can Costco offer these lower prices among everything else?

Well, often times people who visit Costco not only visit to get gas. Most often, people will fill up then head in-store or vice versa. That means people are spending more money with Costco allowing them to keep their prices on gas low.

In addition, the cost of a basic membership is $60 which helps give Costco the ability to keep prices low on their member-only gas. 

Both of these reasons seem so simple but they completely make sense!

Costco Membership is Required

The only downside here is if you only get a Costco Membership to receive those gas discounts. According to Business Insider, you’d need to do a lot of driving in order to make that expense worth it. They estimate you’d need to fill your tank 35 times during the year, otherwise you could lose money in the long run.

Also, there is no secret that lines are LONG at Costco gas stations making that a factor into the whole price and time thing.

Costco Members Happy with Gas Prices

Overall, if you are a Costco member and enjoy discounts on bulk items for you and your family, buying Costco gas makes sense. I enjoy saving money while filling up the tank, don’t you?

Now the only thing missing is the ability to pay for Gas using the new Costco App!

5 Comments

  1. Costco members know! Your numbers are off.

  2. Edgar Martirosyan says:

    this is how they deceive you, I don’t know how you are with mathematics, but everything is very simple. Check how many miles you can drive with $20 gas at Costco and then look at how many miles you drive on Shell, Mobil, Chevron gas and you will see that you are driving at least 20-30 miles more than you are on Costo gas, and if you divide these 20-30 miles by the price of gas, then you will see what is profitable to refuel at Shell, Mobil and Chevron, plus the cleanliness of the engine, Costco gas gives you less mile than the above brands. Costco is almost the same as Arco.

  3. Carolyn Godsey says:

    Not one close to me, I live in Sherman, Texas, only one I’ve seen was in McKinney, Texas?

  4. Kristen Yard says:

    I would check their website, Carolyn! That way, you can see if one is coming loser!

  5. Michael Gene Robinson says:

    I’ve known this for a long time thanks for sharing this information for others to understand or try to understand all gasoline is made the same at the refinery the difference is when Chevron picks up a tank for the other additive package end of the mix, and shell when they pick up their load does the same at Costco there is no additive package just what the EPA requires that’s it so your engine suffers if you run Costco gas all the time it’s just not advertised thanks for allowing us to share our information.
    Michael G Robinson

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