You probably know about Costco. If you haven’t heard about them, let me tell you that they are one of the biggest retailers in the US. They offer one of the best products on the market for dirt cheap prices. And they also offer something for the drivers need, and that is gasoline. And you are probably thinking now if Costco offers cheap products, how much is gas at Costco?
- Is The Gas Available For All?
- How Much Is Gas At Costco?
- Does the Subscription Pays Off?
- How They Sell So Low?
- Octane Ratings
Let me tell you that their gas is one of the cheapest out there. But there is a catch, and we are going to discuss that later in this article.
Gas prices have gone up recently with the pandemic and other issues that we are dealing with in this country. The economies have slowed down and also the fuel consumption. If you are looking for a good deal to fill up your truck on the cheap, Costco is the right place to do that.
There are lines in front of Costco gas stations day and night, with people that are trying to fill up their cars. This can be also frustrating because nobody wants to wait in line to fill up their tank.
Many of you are asking how Costco manages to get all this gas for this low price? Does this low price affect the quality of the gas? Can Costco gas ruin your engine?
In this article, we are going to answer all of your questions and more. You will learn about Costco’s gas stations and their gasoline. You will also learn more about cars and the overall quality of gasoline in this country. In addition, we will mention what to pay the most attention to if you are looking to fill up your car or truck. So, if you are interested to learn, follow along!
Is This Gas Available For Everyone?
We mentioned that there is a catch, right? And that catch is that Costco’s gas is only available for its members. So, if you want to get cheap gas from Costco, you will have to become one of their 87+ million subscribers.
Gas is one of the many things that Costco offers to its subscribers. They also offer free delivery, pharmaceuticals, many different discounts on groceries, and more.
But there is a price for the membership, and that is a yearly subscription that you have to pay to Costco in order to get these services. The yearly price is $60 for the base plan and $120 for the Costco Executive plan.
If you are a Costco regular, this subscription fee will eventually pay off, because there are plenty of free and discounted services that you can get from Costco, and gas is one of them.
Later in this article, we are going to discuss this a bit deeper on how much is gas in Costco compared to other gas stations like Mobil. And we will do simple math, how much gas you need to purchase if you want your subscription to pay off.
How Much Is Gas At Costco?
Many people are asking this question, the short answer is that it depends. Gas prices are adjusted at the global market, so they can sometimes be lower and sometimes go higher.
The difference between Costco and other gas stations is that Costco gas is cheaper. Usually, the price is 60 cents less than a regular Mobil gas station. This price is for one gallon, so if you fill up your tank it adds up and you get a lot of discounts at the end.
But still, at the end of the day, you’ve got to purchase the yearly subscription. And if you are not a Costco regular, you are probably asking yourself, is it worth it?
In our next chapter, we are going to answer your question.
Does A Subscription Pay Off For The Gas Only?
Many people that are not regulars to Costco are asking this question along with how much is gas at Costco? To be honest it’s not cheap to get a yearly subscription. At the end of the day, if this subscription doesn’t pay off, you are losing money.
So, many people have already been testing this and made some testimonials about Costco’s gas prices. And a reader has made simple workings out on a monthly basis.
For example, a gallon of gas at Costco costs around $3.29, and a gallon of gas at a Mobil gas station costs around $3.99 if you pay in cash. Or if you decide to pay with a credit/debit card the gas is going to cost you $4.19 per gallon at Mobil.
And let’s say that you have a car that has a 12-gallon fuel tank and you fill this tank three times a month. This is the math. The first example is with Costco membership and the second example is on standard Mobil gas station.
With Costco Membership
Membership per month $5
Price per gallon $3.29
Gallons of fuel 12
Monthly fill-ups 3
Monthly total $123
Regular gas station:
Gas Price per gallon $4.20
Gallons of fuel 12
Monthly fill-ups 3
Monthly total $150
This simple math means that you have saved $27 dollars per month, in a full year you save $324. Minus the Costco membership of $60 it means that you save $264 on average for the whole year, or $204 if you go for the premium membership.
A thing to consider is that the gas prices vary during the whole year, this is just a rough estimate. But it’s close enough.
You should also take into considerations that the Costco gas stations are very busy. This means that the gas is not that easy to get. There can be big lines, especially in peak hours. So, the best thing is to avoid going there during these hours.
You should also take into consideration the commute time. Because Costco gas stations are not readily available where you live. You need to travel to get there and also spend some money on gas. This will translate into more visits to the Costco gas station. More gas equals more money spent there. And that is the whole purpose of the cheap gas, something that we will discuss later.
If you live near a Costco or you are a Costco regular, it is a no-brainer to go there and spend some money on gas. But if you live somewhere very far from Costco, you can consider some of these things before getting a membership deal. Because not everyone has a lot of money to spend.
How Does Costco Knows That I’m A Member?
If you are not a member you can’t fill up your tank. Costco gas stations are smart and they will know when you apply the Costco shop card or your credit card that you are subscribed to their service. If you are not a subscriber, you will not be able to get fuel.
How Does Costco Manage To Always Keep Its Prices So Low?
Costco’s gas prices are one of the lowest out there, and that is all thanks to their loyal customers. As we said, you need to prove your loyalty to Costco by getting a one-year subscription. With this subscription, you are going to fully enjoy all of their services at a discount price. And one of these services is cheap gasoline as we mentioned in the previous chapter.
Costco implemented a smart way of doing business, by offering cheap gas prices. This was implemented because of the increase in their customer numbers in the markets.
Let’s put it up this way, more people getting in and out of Costco each day, means more profit for the company. A gas station located next to a Costco store is a perfect way to drive more people into Costco’s subscription program. Here is a video on how Costco manages to get these cheap prices.
All of these people are going in and out of Costco stores buying products, these products are bringing profit to Costco, unlike the gasoline. The gas station is only there to bring more customers that want cheap gas prices, that’s it.
It’s the same story with their famous rotisserie chicken and their pizza. They are located at the back of the store. This means that you need to travel a long way and fill your shopping cart until you get there. By this time, you have covered the expenses that Costco makes when buying these products for a cheap price.
It is a simple way of doing business, but a smart way also, because everyone benefits from this. Both Costco and the customers are both getting advantages.
Is Costco Gas A Good Quality Gas?
We talked above about how much is gas at Costco, now let’s discuss more the quality of their gas. Because at the end of the day you need to fill up your car with quality gas. You don’t want to fill up the car with watered down fuel, or something else that isn’t quality gas and doesn’t have any octane numbers.
Bad gas can potentially damage your engine. Namely the injectors. The injectors are hard to fix and also very costly. They get clogged up and get damaged by impurities found in the gasoline. They can be very costly to fix and replace, so keep this in mind.
Costco’s gasoline is relatively safe for your car. Costco claims that their fuel is a high-quality fuel and does include all the deposit control additives that are required by the government institutions. These are standardized requirements that every gas station should have. They went a step further and have been certified to meet the TOP TIER performance standards, for all of their fuels. And that says quite a bit for their dedication and honesty with their customers.
Also, it is foolish to think that a serious company like Costco will bother to make their gasoline low quality. With this approach, they will instantly start to lose customers, and when people start to go away, it is impossible to bring them back. Costco knows about this and they always try to keep their customers happy with their services. And also establish a good relationship in the process by offering a top-quality product.
From Where Does Costco Gets Its Fuel?
This is an important thing to know because you want to know where is your fuel made. Unfortunately, Costco doesn’t share many details on where they get their gas. On the company site, they say that their gasoline comes from “major refineries”.
These major refineries can be one of the top players in the market when it comes to gas. And for sure this possibility is boosting my trust in their gas. Because you don’t want to add fuel to your car from some third-tier refinery that uses the same old methods that were used in the 1980s.
Modern cars require clean gas. The gas needs to be cleaned from all impurities. When you pour it into a bottle you shouldn’t see anything floating around. Because if you see something that floats, that is bad news for your injectors. With this poor fuel, your car may have trouble running and also make some unpleasant noises. The worst-case scenario is injector damage. And these injectors are known to be pricey.
The top-quality fuel also needs to contain certain additives that will make it eco-friendly and will also make sure that your engine runs properly. By knowing that Costco has all of these requirements, you can sleep well and you shouldn’t worry that the gas you fill up with at Costco will ruin your engine.
What Types Of Gas Are Available At Costco?
At Costco, there is a choice of three types of fuel. They offer regular gas that has a lower octane rating and a premium gas that has a higher octane rating. They also offer diesel fuel for cars and trucks.
Their regular gas is rated at 89 octanes, that octane rating is standard across the whole US. The premium is rated at 91 octanes. Premium fuel also comes at a higher price than regular gas.
At their pumps, you will notice the warning members only. So, if you are not a member you cannot purchase gas from Costco gas stations.
In, addition, these three types of gas are the most common across the US. Although there are other options, it’s unfortunate that Costco doesn’t offer these types of fuel. So, if you have a car that is running on a different type of fuel, it is better to look for a gas station that offers them.
Usage of fuel with a low octane rating may result in engine knock. This engine knock is pretty frequent in cars that run at places where fuel has low octane ratings. Some places offer 85 octane gas, but that may be bad for your engine’s overall health and if you run it for long periods of time in this situation. The engine will develop a permanent knock and will wear off prematurely. So, if you want to keep your engine safe, use gas with a higher octane rating.
What Are The Octane Ratings?
An octane rating is a standardized measure of a fuel’s capability against compression. The bigger the octane number, the more compression the fuel injected in the cylinder can withstand before making a detonation.
There is a misunderstanding connecting a higher-octane rating fuel with performance. In reality, the octane rating does not connect directly with the energy content of the fuel. The octane rating simply indicates the fuel capability against compression.
The higher-octane fuels are used in vehicles that make higher compression. And a higher compression in other words translates to a higher power. So, before searching how much is gas at Costco learn more about the octane ratings.
Do I Need To Add Premium Fuel In My Car?
That depends on the engine that you are running on your car. For example, if you are running a high compression engine that requires more octanes, then it is a good idea to add premium fuel. This premium fuel with high octane rating works the best with these types of engines.
These engines that have a higher compression ratio can be found in some high-performance applications and sports cars.
If you don’t have a sports car and you are driving your regular car, adding premium fuel to your tank will not improve your performance. Because your car was standardized to run regular gas at 89 octanes.
If you add premium fuel, you probably will feel a slight improvement but not much, like the people that are running sports cars are seeing.
So, it’s the best idea to not spend more money on fuel without any real reason.
Does Costco Gas Contain Ethanol?
Yes, it does. Costco gas complies with all the laws, namely the Federal Energy Policy Act from 2005. This act requires that a certain amount of ethanol should be included in the national fuel supply. There was another Energy Independence and Security Act from 2007 that boosted the ethanol numbers even higher.
Every company needs to comply with these laws and so does Costco. If you want to learn more about the ethanol in Costco’s gas. There is a label on every Costco gas station that clearly says how many percent of ethanol is in their fuel.
Can I Pay In Cash?
We have discussed how much is gas at Costco, now it’s time to discuss the payment options that you have if you want to get gas from their gas stations.
The Costco gas stations are completely self-serving and you can pay at the pump with your credit card or your Costco shop cards. Search how much is gas at Costco to learn more about their methods of payment.
Payment in cash isn’t available, but you can purchase a Costco shop card inside the warehouse and you can use that card to pay for your gas. This is handy if you don’t have a credit or debit card but still want to fill up your tank.
Are Costco Gas Stations Safe?
Costco gas stations have a great record when it comes to public safety. They comply with the law and fulfill every standard there is in the US when it comes to gas station safety. There are attendants that are readily available to help out the customers and respond to any emergency.
Fire extinguishers are installed on every island and also there are special shut-off mechanisms that stop fuel when the system sees a threat.
But the customers are also required to comply with the rules for the safety record to be achieved. There are many labels on every gas station with warnings that you need to comply with to guarantee your safety.
Turn Off Your Engine
This is a number one rule when you come to a gas station. You stop the car and shut off the engine. This is required in order to prevent a potential fire or an explosion. A running engine means that there is still combustion and this combustion may lead to hazardous situations.
Don’t Smoke Or Use Lighters
This is also one of the common things to be aware of when you are coming to a gas station to fill up your car with fresh gas. All the cigarettes or lighters should be at least 20 feet away from the gas station. If you have a potential fuel leakage in contact with cigarette ash. It could go up in flames instantly and may cause fire and explosions. This can also cost your life, so if you want to be safe, don’t do that.
How Much Is Gas At Costco – Conclusion
Costco is a great wholesale brand that cares about its customers, and the cheap gas they offer proves that statement. Their gas is perfectly refined and meets all the standards that are required by the law and does not differentiate from any other gas station.
We discussed how much is gas at Costco and discovered that their gas is much cheaper than other gas stations and the amount you will save on the gas pays off the yearly membership. So you don’t have to worry about this issue.
Then we discussed the octane ratings and what they mean and which gas is perfect for your vehicle. And also we noted the safety record of Costco gas stations that is outstanding. We concluded that their gas stations are perfectly safe and comply with all the standards.
But also we should take note that you also need to comply with the regulations and always shut off your engine at the gas station and don’t smoke or use lighters when you go to fill up your tank. Be safe and drive safe.