Gas prices are soaring—here’s how save on gas with a Costco membership (2024)

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Gas prices are soaring—here’s how save on gas with a Costco membership? ›

Try a gas rewards program

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.

Buying gas at Costco can save you money -- typical savings are around $0.20 per gallon. It makes stopping at the warehouse club more convenient -- you can buy groceries and fuel up your car. The higher quality of Costco gas could help your vehicle run more smoothly.

Costco opened its first gas station in 1995 with a commitment to members to provide high quality gasoline at the lowest possible prices. Members will find regular and premium grade fuel – and in some places, diesel. High quality fuel – it's another benefit of a Costco membership.

As gasoline prices fall, Costco does not lower prices at the same pace it raises them when prices are climbing. This allows the company to recoup some of the profits lost by doing the reverse when prices were rising.

Regardless though, AAA estimates that most Americans will fill up their tank anywhere between 45 and 55 times a year on average. So, yes, we can VERIFY that it is worth getting a wholesale membership to save on gas prices.

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.

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 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.

A: Costco Shop Cards are available for purchase with cash or check inside the warehouse. Costco Shop Cards may only be purchased or recharged by members, but with assistance from an attendant to first authorize the pump, anyone can use a Costco Shop Card to pay for fuel.

Does Costco make money off of gas? ›

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. Why would Costco do this? It's not an act of charity.

Why are Costco gas pumps so slow? It is part of Costco's psychological “marketing and sales” Plan so that you will think of more merchandise to purchase when you go into the store after having gassed up.

Where does Costco gasoline come from? The gasoline from you local Cosco comes from the same terminal as the rest of your local gas stations. The only difference is that is doesn't get the proprietary additive package added to it that you pay extra for from Shell or Chevron or whatever your local options are.

Costco fuel stations are well-maintained by our capable attendants so you may be confident that the fuel going into your car is clean. Costco uses fuel filters in the petrol pumps to catch particles or debris larger than 10 microns in diameter. For comparison, the average human hair is seventy microns thick.

Costco may have the lowest gas prices in your area, but they do not skimp on quality. Kirkland Signature gas is Top Tier, meaning it is high quality and could help keep your engine running at its best. Top Tier is endorsed by many automotive brands, including Toyota, Honda, Ford, GM, BMW, Audi, and Mercedes-Benz.

“Consumers see this as a customer-friendly convenience, but in truth, they help reduce congestion at the pumps, which allows more cars to pass through the pumps, which allows Costco to sell more gas,” says Bines. “It's a win-win, but only because it first benefits the consumer.”

Costco gas saves $116 per year vs. the average

That worked out to be $0.28 per gallon cheaper on average. The Bureau of Transportation Studies says drivers cover an average of 29 miles per day, which would work out to 10,585 miles a year.

In the U.S., Rewards are not calculated: (i) on purchases of cigarettes or tobacco-related products, gasoline, Costco Cash Cards, postage stamps, alcoholic beverages in certain states (including Alabama, Connecticut, Georgia, Kentucky, Michigan, Ohio and Tennessee), and at food courts; (ii) on membership fees; (iii) on ...

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.

Here's what Costco Executive Membership gets you

Eligible purchases include most grocery and household items but exclude tobacco products, gift cards, postage stamps, gas and alcohol in most states, as well as some services. Certain travel purchases, however, are included in this calculation.