How much can Costco members save on gas annually?

Costco members can save significantly on gas annually, with observed price advantages ranging from $0.16 to $0.95 per gallon, often exceeding the $65 membership fee.

What is the average annual fuel consumption for a US driver?

The typical American driver purchases approximately 600 gallons of gasoline per year.

How many gallons of gas are needed to break even on a Costco membership?

Approximately 400 gallons of gas purchases from Costco are needed to break even on the annual membership fee.

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Where Costco Gas Savings Are Highest

24 Jan

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Summary

Costco gas savings can exceed the annual membership fee.
Average annual savings are calculated based on 600 gallons.
Price advantage ranges from $0.16 to $0.95 per gallon.

Costco's gasoline sales offer a significant perk for its members, with savings potentially covering the annual membership fee. Analysis of 12 metro areas revealed that Costco's gas prices were consistently lower than local market averages.

The price advantage observed ranged from $0.16 to $0.95 per gallon. This translates into substantial annual savings for drivers who purchase an average of 600 gallons per year, a figure provided by fuel market analyst Patrick DeHaan. These savings frequently surpass the $65 annual membership cost.

Even in locations with the smallest price difference, drivers purchasing 600 gallons annually would save more than their membership fee. This break-even point is approximately 400 gallons, equating to about 10,000 driving miles per year. Costco's commitment to competitive fuel pricing makes it a highly valued aspect of membership for many.