Is Costco gas good?
With gas prices rising, you may have heard how you can save money by purchasing gas at Costco.
Read on to learn more about Costco gas and whether it’s worth it.
Table Of Contents
Does Costco Have Gas Stations?
Yes.
Costco’s first gas station opened in 1995.
Its goal was to provide each paying Costco member with high-quality but low-cost fuel.
If you have a Costco gas station in your area, signing up for a Costco membership will give you access to Kirkland Signature Gasoline at affordable prices.
Is Costco Gas Good?
Yes. Despite the low gas prices, Costco gas is top-tier gasoline.
However, it’s critical to weigh the pros and cons of using Costco gas before deciding to take advantage of the gas savings Costco’s membership offers.
Pros
Costco’s gas is as good as any regular gas you would get from any other gas station.
However, the main benefit of getting a Costco membership is that gas is cheaper.
Cheap Prices
A survey by the Oil Price Information Service found that Costco consistently offered gas at cheaper rates than competitors.
On average, Costco sold each gallon at 21 cents less than its major competitors.
If you want cheaper gas, switching to Costco will almost always help you get that.
Cons
Filling up your tank with cheap gas at Costco can help you save a lot over time.
However, that’s not to say there are no disadvantages to it.
Long Lines
Usually, you will experience higher wait times at Costco gas stations.
The main reason for that is that Costco stations are entirely self-service.
That helps reduce the costs of operating the gas stations, but it also means you have to wait for people to get out of their vehicles and use the gas pump themselves.
Some may fumble, leading to delays.
The only exception is in Oregon and New Jersey.
Costco’s gas stations in those states are full-service, as the law requires.
People often complain about waiting half an hour or even an hour to buy gas at Costco.
Every location is different, so it’s essential to know how busy your location tends to get.
Membership Required
You need a Costco membership or a Costco Shop Card to purchase fuel at a Costco gas station.
The cost of this membership is what allows Costco to keep gas prices low.
If you don’t have a local Costco nearby that you can easily access, is a Costco membership worth it?
Many people would say no.
Card Only
Finally, you need to use a credit card to pay for gas at Costco. Costco accepts Visa cards, most PIN-based debit cards, and the Costco Shop Card.
If your job pays you in cash, it might be inconvenient to buy gas at Costco.
That also means that if you have an American Express credit card or a Mastercard credit card, it will not work.
If you typically get points or cash back with your Mastercard credit card for buying gas, you also have to ask yourself if buying at Costco is worth it.
Why Are Costco Gas Prices So Low?
If Costco sells top-tier gasoline, how can it afford to sell it for so low?
One reason is that Costco gas stations are right next to Costco stores.
In other words, when people stop for gas, they also head in to buy groceries, increasing Costco’s overall profits.
However, the main reason Costco gas is so cheap is due to its membership.
Membership Profits
Only Costco members and Costco Shop Card owners can buy gas at Costco.
A regular membership costs $60.
If you are filling up every week, it makes up for the membership cost.
However, if you only fill up every other week, you might pay more than you would at a regular gas station once you account for the membership fee.
The membership fee is also how Costco can afford to price its groceries and other items so low.
While some members shop at Costco once or twice a week, some Costco members get a membership and then sort of forget about it, only taking advantage of the membership a few times a year.
Many live closer to another grocery store and shop at that one for convenience.
That helps Costco earn more money overall.
While Costco Shop Card members can also buy gas at Costco, it’s essential to realize that you can’t use that card anywhere else.
In other words, spending $1,000 on a Costco Shop Card will force you to visit Costco more often.
If you don’t, Costco can keep the money you used to load your card.
Either way, Costco will earn more revenue over the long run.
Is Costco Gas Good For Your Car?
Yes.
Costco’s gas is excellent for your car.
It contains deposit control additives that help prevent the buildup of deposits in your engine.
Not only that, but the gas cleans your engine and protects your fuel injector and intake valve from deposits, reduces emissions, and improves performance.
Kirkland Signature Gas is Top Tier gas.
Many automakers, such as General Motors and BMW, support the Top Tier gas standards.
Costco gas won’t ruin your engine and offers excellent gas mileage overall.
Where Does Costco Fuel Come From?
There’s no one answer to that question, as it depends on your area.
According to Costco, it gets its gas from significant distributors and refineries in the area.
However, it always guarantees top-quality gasoline.
Final Thoughts
Buying gas at Costco is a no-brainer if you already have a Costco membership.
However, it may not be worth it if you don’t yet have a Costco membership.
If you drive for Uber or Lyft, you likely fill up your gas tank very often, making a Costco membership well worth it.
However, if there are long lines at your local Costco, you may lose out on job opportunities, defeating your purpose.
In addition, there are other ways to save on gas.
For example, DoorDash currently offers 10% cash back on gas purchases if you have a DasherDirect card.
