Costco Gas Offers Relief as Prices Soar

Wholesale club's fuel discounts become more valuable as average US gas prices top $3.60 per gallon.

Mar. 14, 2026 at 9:18am

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As gas prices rise amid the war with Iran, Costco is providing significant savings for its members at the pump. The wholesale club typically sells gas about $0.20 per gallon less than nearby stations, but that advantage can be greater in areas with relatively high gas prices. In some metro areas, Costco's gas is over $0.40 below the local average, making the $65 annual membership fee easily recoupable for drivers who fill up frequently.

Why it matters

With gas prices expected to remain volatile, Costco's discounted fuel could provide much-needed savings for household budgets strained by rising costs. The company's value proposition becomes even more compelling when gas prices spike, potentially driving more consumers to join the club to take advantage of the fuel savings.

The details

Costco gas stations are able to offer lower prices than competitors due to the wholesale club's buying power and business model. While the average US gas price topped $3.60 this week, Costco locations in various metro areas were selling gas $0.14 to $0.47 below the local averages. For example, the Costco in Atlanta had gas at $3.26 per gallon, $0.14 below the county average, while the Alhambra, California Costco was selling it for $4.99, $0.47 below the LA County average.

  • Gas prices in the US have risen sharply in recent weeks amid the war with Iran.
  • Last month, Business Insider found that Costco members who buy 600 gallons of gas per year save at least as much as the $65 annual membership fee.

The players

Costco

A wholesale membership club that sells gas at significant discounts compared to nearby stations, providing value for its members as gas prices rise.

Gary Millerchip

Costco's Chief Financial Officer, who stated that higher gas prices tend to highlight the club's value proposition among members.

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What they’re saying

“When prices are higher, that will tend to cause members to maybe take the extra mile that it might be involved to get to the gas station because of the incremental value they see there.”

— Gary Millerchip, Chief Financial Officer, Costco (Business Insider)

What’s next

As gas prices remain volatile, Costco may see increased membership signups and visits to its fuel stations as consumers look to save money on their driving costs.

The takeaway

Costco's discounted gas prices can provide significant savings for members as the overall cost of fuel rises, making the $65 annual membership fee easily recoupable for frequent drivers. This value proposition becomes even more compelling during periods of high gas prices, potentially driving more consumers to join the wholesale club.