Should you get a Costco membership just to save on gas?

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Why Costco Gas Isn’t Worth It.

Central points

• Costco is known for its cheap products, including gas.
• Getting gas at Costo may not be worth the savings based on a number of factors.
• Costco’s notoriously long wait times, inconvenient locations, mandatory credit card use, and membership fee may not be worth the price.

About 1 in 3 (37%) Americans shop at Costco, making it the third largest retailer in the country. There is a good reason for that. 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 must fill up your gas tank at least 34 times to cover the cost of membership.

Assuming you have an 18 gallon tank and save $0.10 per gallon at Costco, you must fill up at Costco 33.33 times to offset the membership cost. If you don’t plan to take advantage of any of Costco’s other benefits, then the likelihood of making your money back from gas is low. You have 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 a quick trip to Costco, I saw the same group of cars waiting 30 minutes to fill up their gas tanks. Idling, leaving a car’s engine running while the car is not moving, wastes gas and is bad for the environment. Depending on the type of car and engine, idling uses up to half a gallon of fuel per hour.

Assuming gas prices are $4 per gallon, you waste $1 in gas while you wait 30 minutes to fill up your gas tank. If you have an 18-gallon gas tank, the $0.10 per gallon savings 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 worldwide, with 578 locations in the United States 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, 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, it may be worth filling up the 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.

In the end, you will do the math yourself. Is the long wait worth saving a few bucks? In addition to the notoriously long lines and inconvenient locations, pay by credit card and make sure you stay current on your membership fees. So when you plug the numbers into your own situation, are you really saving money by filling up your tank at Costco compared to the gas station down the block? Probably not.