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

Gas prices are soaring—here’s how save on gas with a Costco membership (1)

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Whether you’re meal prepping for the week ahead, buying toiletries in bulk or looking for a great deal on a TV, there are plenty of reasons to shop at Costco—and right now, there's an even more compelling one: Cheap gas. The membership-only big box retailer has long been coveted for its massive inventory of groceries, home goods, clothing, personal care itemsand more. It basically has anything else you could ever need to survive a zombie apocalypse—or at least keep a well-stocked pantry, fridge and linen closet). It's also consistently one of the cheapest places to buy gas around, so if you're feeling the pinch at the pump as prices soar, you'll want to check this out.

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Boasting more than 113 million members over 62 million households, Costco operates 828 stores—or warehouses, as they're called—across 14 countries including the U.S., Canada, Japan, Spain, Iceland and France. Unlike a standard grocery or department store, you need a membership to shop there (and even just to get through the front door!). Costco keeps a highly curated 4,000 SKUs in inventory, which it's able to sell at wholesale prices.

►Deals on gas:Sam's Club memberships are virtually free right now—save on gas, appliances, pantry staples and more

►Gas prices:Gas prices top $4 a gallon nationwide, all-time record could be broken this week

If you're interested in shopping at Costco, here’s how a Costco membership works, including how much it costs and whether or not it's worth it for you and your family.

How much is a Costco membership?

Gas prices are soaring—here’s how save on gas with a Costco membership (2)

There are two types of Costco membership: the Gold Star membership and the Executive membership. The Gold Star membershipcosts $60 per year andincludes two cards—one for you and one for someone else in your household—thatgrant you access to all locations worldwide along with Costco online.

The Executive membership costs $120 and similarly includes two cards and access to all locations around the world and online. However, you also get an additional 2% savings on all qualifying purchases (with a maximum total of $1,000 in savings per year), along with savings on vacations booked through Costco Travel.

What can you buy at Costco?

Gas prices are soaring—here’s how save on gas with a Costco membership (3)

The better question is what can’tyou buy at Costco? The retailer offers a wide variety of products. In the grocery section, you'll find produce, fresh bakery goods,shelf-stable pantry items—like granola bars, snacks, spices and coffee—and frozen foods. The rest of the store is a haven ofapparel, name-brand electronics, furniture, cleaning supplies, beauty items, office supplies, plants, sporting goods, fitness equipment, pharmacy staples, bedding and a whole lot more (even caskets).

Keep in mind that the in-store and online shopping experience at Costco may drastically differ—the inventory is usually far greater online than it is in store, but it’ll be cheaper to shop in store thanks to shipping fees.

What are the main benefits of Costco?

Depending on where you live, there are a few key perks to a Costco membership.

Costco gasoline

With gas prices skyrocketing, the draw of Costco gasoline might be a big sell for getting a membership. At the self-serve gas stations—which are located next to the Costco warehouses—you can fuel up with Kirkland Signature gas and diesel for lower prices than you'd pay at other pumps.

Same-day delivery

In most metropolitan areas, you can take advantage of same-day delivery powered by Instacart for purchases of $35 or more.

Concierge services

If you purchase electronics—like a TV, camera, printer or laptop—at Costco, you can take advantage of free concierge services to help set up and operate your new buy.

Free samples

Free samples have long been the cherry on top of shopping at Costco. The in-store shopping experience also includes demos of electronics. Plus, while not free, you cangrab super cheap hot dogs, pizza and other goodies from the Costco food court.

Haul Away

Instead of having to move and discard bulk items like appliances and mattresses yourself, use Costco’s Haul Awayservice, which is available in select locations. Upon delivering your new item, the delivery team will remove your bulk item and recycle it.

Credit card savings

The Costco Anywhere Visa Card by Citi, which doubles as a membership ID, offers 4%back on eligible gas purchases, 3% back on eligible restaurant and travel purchases and2% back on all in-store and online purchases.

Is a Costco membership worth it?

Gas prices are soaring—here’s how save on gas with a Costco membership (4)

The brand claims that the $60 fee for the Gold Star membership ends up paying for itselfif you shop at Costco frequently. Of course, this all depends on how much you buy and how often. If you're someone who likes to buy in bulk or who is shopping for a household, a Costco membership is a no-brainer. It's a great way to stock up on things you need—like a 12-pack of deodorant, 30 rolls of toilet paper and a 288-pound tub of macaroni and cheese—and spend a lot less than you would at a traditional grocery store or similar retailer like Target.

Sign up for a Costco membership starting at $60/year.

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Prices were accurate at the time this article was published but may change over time.

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

FAQs

Is Costco membership worth it for gas? ›

“Costco has a wide range of businesses, and this is seen as a boost to those businesses.” Even if you're not a Costco shopper, the savings on gasoline alone can make the price of a $60 membership worthwhile.

How much do you save on gas with a Costco card? ›

Most reports seem to indicate that Costco gas tends to be about $0.20 less on average than traditional gas stations in the same area, although there are reports that estimate the savings at nearly double this amount. To be conservative with the analysis, we'll use $0.20 per gallon in savings.

What is the benefit of getting gas at Costco? ›

Costco gas is offered at a great price

Although the exact amount of savings you'll get varies based on your location and the specific club you're shopping at, you'll typically save around $0.20 per gallon at Costco according to most online reports. Most cars hold between 10.5 and 18.5 gallons of gas.

Why does everyone go to Costco for gas? ›

Quality gas is important, yes, but so is price. Costco Gas Stations offer consistently low, member-exclusive prices. With the Costco app, you can check Costco gas prices on your phone. On the app, find your local warehouse to see hours of operation, gas prices and more warehouse details.

Do you get 2 cash back on Costco gas with an executive membership? ›

Gas purchases, for example, do not earn you cash back as an Executive member. Neither do cigarette purchases or alcoholic beverage purchases in certain states. Additionally, Costco Shop Cards (Costco's version of a gift card) won't be eligible for cash back, and neither will postage stamps.

Which Costco card is best for gas? ›

Costco Anywhere Visa Card by Citi Cash Back Rewards

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.

Why is gas so much cheaper at Costco? ›

So why is it so much cheaper than the competition? 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.

Do Costco members get discounts on gas? ›

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.

Is Costco Premium gas 91 or 93? ›

Gasoline ​octane can vary by state, but at Costco, it's typically 87 octane for Regular and 91 octane for Premium Gasoline.

Is Costco fuel good quality? ›

Good station operation and maintenance means the fuel is filtered and that contaminants, such as sediment and water, do not find their way into our members' vehicles. Costco fuel stations are well-maintained by our capable attendants so you may be confident that the fuel going into your car is clean.

Does Costco gas pay for itself? ›

If you're able to save $0.17 on 14.5 gallons of gas, each fill-up at Costco saves you around $2.47 compared with getting gas elsewhere. If you're looking to cover your membership fee with gas alone, you'd need to get gas at Costco between 24 and 25 times per year. If you go around twice a month, you'll easily do that.

What makes Costco gas so good? ›

Costco offers Top-tier gasoline, ensuring that their fuel contains higher levels of detergents, which contribute to engine cleanliness over time. On the other hand, Sam's Club does not provide Top Tier gasoline. We can verify that the gas quality is not the same at Sam's Club and Costco.

Does Costco gas really save money? ›

It's a well-accepted fact that Costco gas is cheaper than the fuel at most other places. While the exact amount of savings you'll get depends on factors like where you live and which club you visit, you can reasonably expect to save around $0.15 to $0.20 per gallon.

What is eligible gas for a Costco card? ›

Eligible gas stations include any facilities that assign a merchant category code (MCC) for gas and EV charging stations to its fuel purchases. Costco Credit Card cardholders will get 4% cash back on all eligible purchases up to $7,000 spent each year, and 1% cash back afterwards.

Why are the gas lines so long at Costco? ›

“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.”

Is Costco premium gas worth it? ›

Yes, Top Tier gas is worth the extra money,” CarFax reported. “The benefits are not a myth.” While Top Tier fuel may cost a bit more, you're likely to save more overall at the pump if you fill up at a warehouse store — like Costco and Sam's Club — than at a regular gas station.

Is Costco gas card good? ›

The Costco Anywhere Visa® Card by Citi* lets you earn rewards on all of these purchases and more. We like that this card offers some of the best gas rewards rates on the market, along with strong rewards rates on restaurants, eligible travel and Costco spending.

How much do you have to spend at Costco to break even? ›

To break even on the cost of upgrading your Costco membership, you need to spend $3,000 in a year -- because 2% of $3,000 is $60, which is the price difference between the basic membership and the Executive one. So once you've spent just $3,001, you're ahead financially with the Executive membership.

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