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Where Costco Gas Savings Are Highest
24 Jan
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.
While fuel prices fluctuate daily, a 2019 study by the Oil Price Information Service indicated that Costco typically offers gas about $0.20 per gallon cheaper than conventional stations. The company's expansion, including its first stand-alone gas station in California, underscores the strategic importance of fuel sales to its member value proposition.
