Is Costco Gas Actually Cheaper (After You Pay for the Membership)? (2024)

FAQs

Is Costco Gas Actually Cheaper (After You Pay for the Membership)? ›

The short answer to whether Costco gas savings can justify the cost of a membership is yes. But there are a few things to keep in mind. Most significantly, this analysis assumes that you only fill up your gas tank at Costco, which may not always be practical.

Costco gas is only available to members and is usually the lowest price around. AAA says the average price of gas in Sacramento is $5.39 a gallon and GasBuddy reports Costco locations in Sacramento are selling gas for as low as $4.89 a gallon — that's 50 cents cheaper!

To reach that total, they divided the cost of the membership by the 20 cents per gallon they estimate a driver will save by filling their tank at Costco. The resulting figure, in the case of the $60 Gold Star membership, is 300, or the number of gallons of gas you'd need to purchase to achieve $60 in savings.

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.

“Yes, Top Tier gas is worth the extra money,” CarFax reported. “The benefits are not a myth.” While Top Tier fuel may cost a bit more, you're likely to save more overall at the pump if you fill up at a warehouse store — like Costco and Sam's Club — than at a regular gas station.

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.

Costco gas is offered at a great price

Although the exact amount of savings you'll get varies based on your location and the specific club you're shopping at, you'll typically save around $0.20 per gallon at Costco according to most online reports. Most cars hold between 10.5 and 18.5 gallons of gas.

What Is the Costco Gas Discount and How Does It Work? It's not a “discount,” so much as exclusive access to Costco's fueling stations, which tend to be cheaper than others. Current Costco members can fuel up at Costco gas stations for gas that costs less per gallon than what the competition charges.

So why is it so much cheaper than the competition? 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.

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 fuel good quality? ›

Good station operation and maintenance means the fuel is filtered and that contaminants, such as sediment and water, do not find their way into our members' vehicles. Costco fuel stations are well-maintained by our capable attendants so you may be confident that the fuel going into your car is clean.

Quality fuel, Costco value

Kirkland Signature Gasoline has been certified to meet TOP TIER^™ performance standards. Learn more about Top Tier at toptiergas.com.

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.

It's a well-accepted fact that Costco gas is cheaper than the fuel at most other places. While the exact amount of savings you'll get depends on factors like where you live and which club you visit, you can reasonably expect to save around $0.15 to $0.20 per gallon.

What happens if you use premium gas instead of regular? The only thing that will happen if you use premium gas in an engine designed for regular fuel is that you'll spend more money, according to Cars.com. An engine that runs on regular gas will not perform better because you put premium gas in the tank.

You'll know you're filling up with the good stuff if you spot a small green sticker on the pump that says “TOP TIER Detergent Gasoline.” As of early 2022, the following stations sold Top Tier gasoline in the U.S.: 76, ARCO, Aloha, Beacon, Breakaway, CITGO, Cenex, Chevron, Conoco, Costco Wholesale, CountryMark, ...

Quality gas is important, yes, but so is price. Costco Gas Stations offer consistently low, member-exclusive prices. With the Costco app, you can check Costco gas prices on your phone. On the app, find your local warehouse to see hours of operation, gas prices and more warehouse details.

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.

Costco Anywhere Visa Card by Citi Cash Back Rewards

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.