Costco is famous for offering bulk savings, but when it comes to fuel, does filling up at their gas stations really save you money? Many drivers assume that Costco gas is always the cheapest option, but a deeper look reveals that the real answer depends on more than just the posted price.

Here’s a real-world analysis comparing Costco gas to local competitors, factoring in membership fees, wait times, and gas quality, using trusted data sources like GasBuddy.

Cost Comparison: Costco vs. Local Stations

Using GasBuddy, we compared the average price per gallon at a Costco station versus nearby competitors within a 5-mile radius.

• Costco Gas Price: $3.49 per gallon (regular unleaded)

• Local Station Average: $3.69 per gallon (regular unleaded)

• Price Difference: Costco is approximately 20 cents cheaper per gallon.

For a typical 15-gallon fill-up, this means a savings of about $3.00 each time you visit Costco for gas. If you fill up once a week, that’s roughly $156 in annual savings just on fuel.

Membership Fee Factor

Costco requires an annual membership, which costs $60 for a basic Gold Star membership or $120 for an Executive membership. To truly save, your fuel and shopping savings need to outweigh this upfront cost.

• Basic Membership:
  If you save $3.00 per week on gas alone, you would recover the $60 membership fee in about 20 fill-ups—less than half a year for regular drivers.

• Executive Membership:
  If you opt for the $120 Executive membership, you earn 2% cashback on qualified Costco purchases, helping offset the higher fee.

Wait Times and Convenience

One hidden cost of Costco gas is time. Especially during peak hours, it’s not uncommon to wait 10 to 20 minutes in line. For some drivers, this delay cancels out the savings if they value their time highly or if gas is urgently needed.

• Tip: Try visiting early in the morning or late in the evening during weekdays to avoid long lines.

Gas Quality: Is Costco Fuel Good for Your Car?

Costco gas is certified as Top Tier, which means it meets higher standards for detergent additives and engine cleanliness compared to non-Top Tier brands. Top Tier gasoline can improve engine performance and longevity over time, according to studies cited by the American Automobile Association (AAA).

• Bottom line: Costco gas is not just cheaper—it is also high-quality, offering additional value beyond the pump price.

Other Factors to Consider

• Payment Methods: Some Costco gas stations only accept Visa credit cards, debit cards, or Costco Shop Cards.

• Limited Locations: Not every Costco has a gas station, and they may not always be conveniently located.

• High Demand Periods: Before holidays or weekends, expect extra-long lines and potential temporary closures for maintenance or supply issues.

Final Verdict: Is It Worth It?

If you already have a Costco membership and a location nearby, Costco gas is almost always a cost-effective option. The price per gallon is consistently lower than nearby competitors, and the quality is as good or better than many major brands.

However, if you drive infrequently, value time over savings, or live far from a Costco location, you might be better served by combining price-tracking apps like GasBuddy with cashback tools like Fluz to shop discounted Shell gift cards and maximize fuel savings without the added membership cost.