As a Costco member and a dedicated Costco-goer in Canada, I can tell you there are countless perks to the membership. One of my favourites? The super low prices on gas that saves me big money over the course of a year (over $500). If you've ever driven past a Costco and noticed the lines of cars waiting to fill up, you've seen the power of a good deal. But how exactly does Costco manage to keep their prices so cheap? Let's dive in.
The Costco Gasoline Advantage
The trick to understanding Costco's cheap gas prices lies in understanding the business model of the company itself. Costco isn't your typical retail store; it's a membership-only warehouse club. They don't make money by marking up the price of individual items like a traditional grocery store. Instead, they sell items at a smaller margin and make some of their profits through membership fees.
The same principle applies to their gasoline business. Costco isn't in possession of some secret well of cheap petrol. They're buying gas from the same suppliers as other stations. What sets them apart is their ability to offer gas at lower prices because they’re not relying on it as a primary source of revenue. It's an extra perk they offer their members. Go, Costco, go!
It's no surprise that their gas stations are usually right next to their stores. You fill up your tank, and maybe you remember you need milk, or bread, or that new 65-inch TV. Those shopping trips that happen because you were already there to get gas help Costco maintain their low prices at the pump.
High Quality at Low Cost
Now you might be thinking: "Ok, the gas is cheap, but is it any good?" The answer is a resounding yes! Costco uses a stringent supplier selection process, and their fuel regularly undergoes testing to ensure it's free of impurities and contaminants. Their gasoline is even certified according to the TOP TIER standards, which means it contains detergent additives that improve your vehicle's fuel economy.
In a 2018 survey in the US, it was found that Costco's gasoline was around 21 cents per gallon cheaper than other stations on average, with variations depending on location and competition. But the quality? Just as good, if not better, than the more expensive alternatives.
Things to Know Before You Buy
Before you rush off to fill your tank, there are a few things to keep in mind about Costco gas stations.
First, they're for members only. They're accessible to Gold Star, Executive, and Business memberships. By the way, here is how to choose between Gold Star and Executive.
When you pull up to the pump, don't worry about which side your gas tank is on. Costco’s pumps have extra-long hoses that let you fill up from either side of your vehicle. However, they operate with a one-way direction system, and you should avoid blocking the middle lane.
It's also worth noting that Costco's gas stations can get busy. I've found the lines are usually longest during the weekdays, early in the morning, and later in the evening - before or after the typical work hours. Weekends can also be packed. If you're looking for a quieter time to fill up, I recommend mid-day during the week.
Costco Gas Stations: Working Hours
In my experience, the operational hours of most Costco gas stations are from 6:00 AM to 9:30 PM daily, giving a wide window to fill up. You can always Google "Costco gas near me" and find the closest Costco with a gas station and their working hours.
How is the price on Costco gas determined?
Let's talk about how the price of gas is determined. About two-thirds of the cost is driven by the crude oil cost. The remaining one-third is a combination of taxes, refining, distribution, and marketing. Other factors that influence gas prices include supply and demand, geopolitical events, natural disasters, and even seasonal changes. Despite these variable factors, Costco manages to keep their prices low due to their bulk purchasing power and low overhead costs.
However, it's worth mentioning that the savings might not be for everyone. If you live far from a Costco or you're not a fan of long wait times, the money saved might not outweigh the inconvenience. Also, Costco gas stations require payment by credit card and a membership fee, which may not appeal to everyone.
How to find the current price on Costco gas?
Finding the current gas prices at your local Costco gas station in Canada is easy thanks to the digital world we live in today. The internet is filled with specialized websites that monitor and report gas prices in real-time. These platforms compile information from various sources, including user reports, to provide the most accurate and up-to-date gas prices.
Sites like GasBuddy, CAA Gas Prices, Essence Montreal (for Quebec), and others are an excellent place to start. Simply input your location, and these sites will display the current gas prices at various stations in your area, including Costco.
Here are the steps to take:
Once you land on one of these websites, there's typically a search bar where you can enter your city, province, or postal code. The website will then display a list of gas stations in your area, often with the option to sort by price. If you're specifically looking for Costco, you can either scroll through the list or use a filter option if one is available.
While these prices are usually accurate, remember that gas prices can fluctuate. So, make sure to check just before you head out.
Wrapping up
Overall, my experience as a Costco member and regular user of their gas stations has been largely positive. The cheap, high-quality gasoline and the convenience of shopping after filling up make it an excellent option for me. They maintain their stations well, the attendants are trained, and their commitment to safety and the environment is commendable. Plus, filling up my car at Costco means more money in my pocket at the end of the day, and who doesn't love that?