Why Costco, Sam's Club typically have lower gas prices than other stations
Share this @internewscast.com

When your fuel gauge hovers close to empty, you might choose a gas station that offers rewards or boasts great snack options. Alternatively, you might head to your nearby Costco or Sam’s Club to take advantage of their slightly lower fuel prices.

But how can those warehouses keep their prices so much lower than your other favorite fueling spots?

According to Patrick De Haan, GasBuddy’s petroleum analysis lead, these stores offer reduced fuel margins to attract customers to their retail locations.

Essentially, Costco and Sam’s Club use “gasoline as the catalyst to get people” to their warehouses, he explained.

“The goal is to lure you in,” De Haan explained. “Often, while refueling at Costco, customers think, ‘I might as well shop inside since I have a few items to buy.’ Customers then enter, often spending more on items with higher profit margins.”

De Haan continued, noting that the retailers aren’t losing any money on gas.

Costco’s beloved hot dog combo works in relatively the same fashion. Since the hot dog and soda meal was introduced in the mid-1980s, it has maintained its $1.50 price tag. As long as customers are coming into warehouses and shopping for other higher-priced items, the hot dog and fountain soda is a worthwhile promotion for Costco. The same can be said for its rotisserie chicken.

The volume of gasoline Costco and Sam’s Club warehouses purchase also helps to offset the costs, oil industry consultant Andrew Lipow previously told Nexstar’s NewsNation.

De Haan previously told Consumer Reports that gas at warehouse stations is typically anywhere between 5 cents and 25 cents cheaper per gallon than at other nearby gas stations.

“And when prices rise, they hold their prices down for longer,” he added.

While the prices may be relatively similar between the two companies, the type of gas varies.

Both offer unleaded, premium, and diesel fuels (here’s how to know which you should be getting), only Costco offers Top Tier fuel.

The fuel, according to Top Tier, is intended to keep engines cleaner by reducing deposit buildup on injectors and intake valves. A 2016 study by AAA found that Top Tier gasoline keeps engines 19 times cleaner.

“Yes, Top Tier gas is worth the extra money,” CarFax reported. “The benefits are not a myth.”

Share this @internewscast.com
You May Also Like

Over 100,000 undocumented patients have sought medical care following Gov. Abbott’s executive order

AUSTIN (KXAN) More than 100,000 undocumented people sought medical care in Texas…

Latest Update: Chicago Police Confirm Drive-By Shooting in River North Leaves 4 Dead, 18 Injured

CHICAGO Eighteen people were shot and four were killed in a drive-by late…

Ongoing Efforts to Find Swimmer Missing from North Myrtle Beach

Authorities in North Myrtle Beach, S.C., remained engaged in a search effort…

Richmond County Sheriff Commends Inmates for Making Positive Choices

AUGUSTA, GA. () – Richmond County Sheriff, Gino Brantley, is praising three…

Actor from ‘Reservoir Dogs’ Passes Away at 66

LOS ANGELES (ASSOCIATED PRESS) — Actor Michael Madsen, renowned for his intimidating…

Judge Refuses Bail for Sean ‘Diddy’ Combs Following Prostitution-Related Conviction

Editor’s Note: This article involves discussions of rape or sexual assault that…

Storm Team 3: Scorching and Dry July 4th, Monitoring Weekend Tropical Activity

Thursday afternoon in Savannah, Ga. brought hot and stormy weather, with some…

Mamdani Encounters Series of Anti-Muslim Incidents After Winning NYC Primary

New York City mayoral candidate Zohran Mamdani has faced a litany of…

Trump Set to Launch Yearlong Celebration for America’s 250th Anniversary with an Event in Iowa

WASHINGTON – During his campaign, President Donald Trump vowed to host an…

City Releases Statement Following Water Plant Accident

SAVANNAH, Ga. () — The City of Savannah revealed on Thursday that…

House Delivers GOP’s ‘Big, Beautiful Bill’ to Trump, Marking Major Victory for Republicans

The “big, beautiful bill” is heading to President Trump’s desk. On Thursday…

Trump Supporters Applaud Pause on Ukraine Weapons Despite Concerns Over Iran Strikes

WASHINGTON – President Donald Trump is receiving accolades from his staunchest supporters…