Is Costco Gas Worth It?

Real savings analysis: membership cost vs fuel savings, plus quality concerns addressed.

The Quick Answer

Yes, for most drivers. Costco gas typically saves $0.20-$0.40 per gallon compared to nearby stations. If you drive 12,000 miles per year at 25 MPG, that's $96-$192 in annual gas savings, more than covering the $65 basic membership.

But there are trade-offs to consider.

How Much Cheaper Is Costco Gas?

Costco consistently ranks among the cheapest gas stations in the country.

Typical savings vs. nearby stations:

Why is Costco cheaper?

1. Loss leader strategy: Costco uses gas to drive store traffic
2. Bulk purchasing: Massive volume = better wholesale prices
3. Low margins: Costco accepts minimal profit on gas
4. Efficient operations: High-throughput stations, minimal staff

The Membership Math

Basic Membership: $65/year

Break-even calculation:

• $65 / $0.25 average savings per gallon = 260 gallons to break even on gas alone
• At 25 MPG, that's 6,500 miles of driving
• Most drivers exceed this easily

Realistic scenario:

• Drive 12,000 miles/year
• 25 MPG = 480 gallons/year
• Save $0.30/gallon = $144 in gas savings
• Minus $65 membership = $79 net savings from gas alone

Plus, you save on everything else at Costco (groceries, household items, etc.).

Executive Membership: $130/year

Additional benefit: 2% cash back on all Costco purchases, including gas, up to $1,250/year.

Gas cashback calculation:

• 480 gallons × $3.50/gallon = $1,680/year on gas
• 2% back = $33.60 additional savings

Executive worth it for gas alone? Only if you're an extremely high-mileage driver. The extra $65 for Executive makes sense when you factor in 2% back on all Costco purchases.

Costco Anywhere Visa: Additional Savings

The Costco credit card adds:

• 5% back on Costco gas
• 4% back on other gas stations

With the card:

• 480 gallons × $3.50 = $1,680 on gas
• 5% back = $84 additional savings

Total potential savings:

• Cheap Costco prices: ~$144
• Costco Visa 5% back: ~$84
• Total: $228/year in gas savings

Is Costco Gas Good Quality?

Short answer: Yes. Costco gas is Top Tier certified and meets strict quality standards.

Top Tier Certification

Costco gas is Top Tier certified, meaning it contains more detergent additives than EPA minimum requirements. Top Tier gas helps:

• Keep fuel injectors clean
• Reduce carbon deposits
• Maintain engine performance

Other Top Tier brands include Shell, Chevron, BP, and Exxon.

The Quality Concern

Some people worry that "cheap gas" means "bad gas." This is a myth.

Why Costco gas is high quality:

1. All gas comes from the same refineries (by law, they can't discriminate)
2. Costco adds its own Top Tier additive package
3. High turnover means fresh gas (no sitting in tanks for weeks)
4. Costco's reputation depends on quality

Industry insider perspective: Costco gas is the same base fuel as premium brands, just with Costco's own additive package (which meets Top Tier standards).

The Real Drawbacks

1. The Lines

The biggest downside. Costco gas stations are notorious for long lines, especially:

• Weekends
• After work hours (4-7 PM)
• First/last week of month

Wait times:

• Best times: Weekday mornings, 6-9 AM
• Worst times: Saturday afternoons, 1-5 PM

Time cost calculation:

• 15-minute wait vs. no wait
• If your time is worth $20/hour, that's $5 in time cost
• Savings of $4.50 on a 15-gallon fill? Break-even.

Pro tip: Use the Costco app to check gas prices and (sometimes) wait times at nearby locations.

2. Location Inconvenience

Costco warehouses aren't on every corner. If the nearest Costco is far from your regular routes, the savings may not be worth the detour.

Detour cost calculation:

• Extra 5 miles round trip
• At 25 MPG and $3.50/gallon = $0.70 in extra fuel
• Plus wear and tear (IRS rate: 67 cents/mile) = $3.35 total cost

If your fill-up savings is $4.50 but your detour costs $3.35, net savings is only $1.15.

3. Membership Required

You can't buy Costco gas without a membership. If you don't shop at Costco regularly, the $65 membership for gas alone is a harder sell.

Alternatives if you don't want a membership:

• Sam's Club gas (similar prices, $50 membership)
• Warehouse store gas with Scan & Go (some Sam's locations)
• GasBuddy app for finding cheap non-warehouse gas

4. Cash/Debit Preference (Some Locations)

Some Costco gas stations have historically preferred cash or debit over credit cards. However, most now accept Visa credit cards without issues, especially the Costco Anywhere Visa.

Costco vs. Other Warehouse Clubs

Sam's Club

Price: Usually within $0.02-$0.05 of Costco

Membership: $50/year (basic), $110/year (Plus)

Pros:

• Slightly cheaper membership
• Often shorter lines
• Scan & Go app (no membership required at some gas stations)

Cons:

• Fewer locations than Costco
• Gas quality not Top Tier certified

BJ's Wholesale

Price: Similar to Costco and Sam's

Membership: $55/year (basic), $110/year (Perks)

Pros:

• Accepts manufacturer coupons
• Often has promotions on gas

Cons:

• Limited geographic availability (mostly East Coast)
• Smaller stations, more variable wait times

When Costco Gas ISN'T Worth It

Skip Costco gas if:

1. The nearest Costco is significantly out of your way (5+ miles detour)
2. You value your time highly and typical wait times exceed 10-15 minutes
3. You don't shop at Costco for anything else (membership harder to justify)
4. You have access to employee discounts at other gas stations
5. You can stack multiple rewards at other stations that beat Costco's net price

Maximizing Costco Gas Savings

Best Practices

1. Fill up during off-peak hours: Weekday mornings are best
2. Use the Costco Anywhere Visa: Adds 5% back
3. Check prices in the app: Sometimes nearby stations are competitive
4. Combine with shopping trips: Don't make gas-only trips
5. Fill up when convenient, not empty: Don't make special trips when almost empty

The Optimal Strategy

If Costco is on your regular route:

• Fill up at Costco every time
• Use Costco Visa for 5% back
• Go during off-peak hours when possible

If Costco requires a detour:

• Fill up at Costco when you're shopping anyway
• Use a high-rewards card at convenient stations for other fill-ups
• Don't make gas-only trips to Costco unless savings exceed $3-4

Real-World Scenarios

Scenario 1: Regular Costco Shopper

• Profile: Shops at Costco 2x/month, Costco is 2 miles from regular route
• Gas usage: 40 gallons/month
• Savings: $0.30/gallon × 40 = $12/month = $144/year
• Verdict: Absolutely worth it. Fill up every visit.

Scenario 2: Occasional Costco Shopper

• Profile: Shops at Costco 4x/year, Costco is 8 miles from regular route
• Gas usage: 40 gallons/month
• Savings if making gas trips: $12/month - $3 detour cost = $9/month
• Verdict: Only fill up when already shopping. Use other rewards cards otherwise.

Scenario 3: Non-Costco Shopper Considering Membership for Gas

• Profile: Never shops at Costco, nearest Costco is 5 miles away
• Gas usage: 40 gallons/month
• Annual gas savings: $144/year
• Membership cost: $65
• Net savings: $79/year
• Verdict: Borderline. Only worth it if you'd also use Costco for other purchases.

The Bottom Line

For regular Costco shoppers: Absolutely fill up at Costco. The savings are significant and you're already there.

For non-Costco shoppers: The gas savings alone can justify membership, but only if Costco is reasonably convenient. Consider whether you'd use the membership for other purchases too.

The hybrid approach: Many people fill up at Costco when convenient (shopping trips, on regular routes) and use rewards cards at other stations otherwise.

Last updated: January 2025