I love Costco. Not only can I get insanely cheap items in bulk, but I can save a ton while filling up my Honda Pilot with gas. If you haven’t thought of it before, you might now – Just Why is Costco Gas So Cheap? Well, it’s not by accident and there certainly is a reason for it. Here’s why…
Here’s Why Costco Gas is So Cheap
Costco is known for their amazing bulk pricing and cheap gas but you may not have ever known why they can offer gas for so cheap (well, until now).
On average, Costco gas costs $0.21 cheaper per gallon than competitors and that is a huge difference when you are looking to save without the need to rack up fuel points. (Source)
So, why is that? How can Costco offer these lower prices among everything else?
Well, often times people who visit Costco not only visit to get gas. Most often, people will fill up then head in-store or vice versa. That means people are spending more money with Costco allowing them to keep their prices on gas low.
In addition, the cost of a basic membership is $60 which helps give Costco the ability to keep prices low on their member-only gas.
Both of these reasons seem so simple but they completely make sense!
The only downside here is if you only get a Costco Membership to receive those gas discounts. According to Business Insider, you’d need to do a lot of driving in order to make that expense worth it. They estimate you’d need to fill your tank 35 times during the year, otherwise you could lose money in the long run.
Also, there is no secret that lines are LONG at Costco gas stations making that a factor into the whole price and time thing.
Overall, if you are a Costco member and enjoy discounts on bulk items for you and your family, buying Costco gas makes sense. I enjoy saving money while filling up the tank, don’t you?
Now the only thing missing is the ability to pay for Gas using the new Costco App!