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Approximately 1 in 3 (37%) Americans shop at Costco, making it the third-largest retailer in the country. There's a good reason why. Costco offers high-quality items at low prices, including fuel. Every time I visit Costco, the line for members filling up their gas tanks stretches almost the entire block. Gas is almost always cheaper at Costco, but is getting gas at Costco worth it?
Is Costco gas worth the membership cost?
Costco charges an annual membership fee of $60 for its Business or Gold Star Members and $120 for an Executive Membership. Taking into account the membership fee, you will need to fill up your gas tank at least 34 times to cover the cost of the membership.
Assuming you have an 18-gallon tank and save $0.10 per gallon at Costco, you would have to fill up at Costco 33.33 times to make up for the membership costs. If you don't plan on taking advantage of any of Costco's other benefits, then the likelihood of making back your money from gas is low. You would need to fill up your gas tank almost three times every month for it to be worth it.
Is Costco gas worth the wait?
Last week, after making a quick trip to Costco, I saw the same group of cars waiting for 30 minutes to fill up their gas tanks. Idling, leaving a car's engine running while the car is not in motion, wastes gas and is bad for the environment. Depending on the type of car and engine, idling uses up to a half gallon of fuel per hour.
Assuming gas prices are $4 per gallon, idling while waiting 30 minutes to fill up your gas tank wastes $1 in gas. If you have an 18-gallon gas tank, then the $0.10 of savings per gallon drops to $0.04 per gallon, not including the time you spent sitting in your car.
Is Costco gas worth the drive?
Another aspect to consider is that many people do not live close to a Costco. There are 838 Costco warehouses across the globe, with 578 locations in the U.S. and Puerto Rico. With the average car getting 25.7 miles per gallon, if you lived more than 15 to 20 miles from a Costco, then the round trip would negate any savings you get.
Is Costco gas worth it?
If you shop at Costco often and regularly take advantage of Costco's other benefits, then it may be worth it to fill up your tank, especially if your wait isn't that long. You can save on fuel from other gas station chains through their loyalty programs and certain credit cards that offer gas rewards. These rewards and loyalty programs can potentially save you more than you would at Costco.
Ultimately, you want to do the math yourself. Is the long wait worth saving a couple of dollars? In addition to the notorious long lines and inconvenient locations, you have to pay by credit card and ensure you stay current on your membership fees. So, when you plug the numbers for your own situation, are you really saving by filling up your tank at Costco compared to the gas station down the block? Probably not.
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