Since Costco tends to have the cheapest gas in my area, I’ll often make a point to time my shopping to when my tank is getting low. See, it doesn’t necessarily make sense for me to drive miles out of my way to get to Costco for a cheaper fill-up — not in my gas-gulping minivan. But if I’m going to the store already, then filling up before my shopping run takes care of another errand and lets me benefit from Costco’s low fuel prices.
However, there’s one super disappointing thing I’ve discovered about buying gas at Costco. And it’s something you should know about so you can work around it.
A major Costco letdown
The lines at Costco’s gas stations tend to be long, so I find that it generally takes a few extra minutes to fill up my car there than at regular fuel stations in town. Even worse, that’s not the most disappointing thing about getting gas at Costco. Rather, it’s the lack of cash back for Executive members.
Costco sells two membership tiers. The basic (Gold Star) membership currently costs $60 per year, while the Executive membership costs $120 per year. Come Sept. 1, these fees are rising by $5 and $10, respectively, bringing the cost of a basic Costco membership up to $65 and an Executive membership up to $130.
Costco customers are often willing to pay double for an Executive membership because it offers 2% cash back on store purchases as well as those made online. But that cash back offer does not extend to gas at Costco fuel stations.
How to make your own cash back deal
It’s a bummer that Costco’s Executive membership doesn’t reward drivers at the pump, but that doesn’t mean you can’t get cash back in another way.
If you make a point to fill up your car using a credit card with great gas rewards, you might manage to score more than 2% back on your fill-ups. It pays to shop around for a new credit card if all of the ones you have don’t reward you beyond the 1% mark.
It’s also worth seeing if any fuel stations in your area offer a deep discount for paying in cash. Say you have a credit card that gives you 2% back at the pump. With a $40 fill-up, that’s $0.80 back in your pocket. But if that $40 represents 11 gallons of gas, and there’s a station that will give you $0.10 off per gallon by paying cash, then you stand to save $1.10, which is a better deal than getting $0.80 back.
All told, it bugs me that Costco doesn’t offer cash back at the pump for Executive members — namely, because I’d stand to collect a lot of it if that were the case. But that doesn’t mean you should stop filling up at Costco. Rather, do so with a credit card whose rewards include cash back. Also, don’t discount the idea of seeking out cash discounts that reward you financially even more.
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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.
This Is the Most Disappointing Thing About Buying Gas at Costco was originally published by The Motley Fool
Both Costco and Shell are top tier gasolines. If you read what top tier is then you can decide for yourself if the difference in Shell versus Costco makes sense for you.
The fact that gas is cheaper at Costco doesn't mean it's lower in quality. The company offers Kirkland Signature gasoline, which is formulated to improve vehicle performance and fuel economy. Costco says the gas also reduces emissions, making it better for the environment.
Costco is listed as a TOP TIER™ gasoline retailer. Find out more at www.toptiergas.com. Kirkland Signature™ Gasoline contains five times the EPA detergent requirement in both regular unleaded and premium grades, and is formulated to clean your engine and help your vehicle run like new.
If you're looking to save money on gas—or anything car-related, including tires—Costco is the way to go. In fact, Costco's gas prices are the lowest in many states. So it makes sense that customers wait in line (sometimes for more than an hour) to fill up their tanks.
All gasoline at Costco contains deposit control additives. Since March of 2014, Kirkland Signature™ Gasoline has been certified to meet the TOP TIER™ performance standards: www.toptiergas.com/licensed-brands/ and we are proud to offer our high quality product to our members.
Costco gas is higher quality than many competitors
Kirkland Signature Gasoline is TOP TIER™ certified, which means it meets stringent performance standards. Using TOP TIER™ gas can reduce valve damage, sticking valves, and fouled plugs.
The short answer is that unlike pretty much every other retail business that sells gasoline, Costco doesn't care about making money from its gas pumps. In fact, Costco typically sells its gas at a moderate loss. Why would Costco do this? It's not an act of charity.
Quality gas is important, yes, but so is price. Costco Gas Stations offer consistently low, member-exclusive prices. With the Costco app, you can check Costco gas prices on your phone. On the app, find your local warehouse to see hours of operation, gas prices and more warehouse details.
Used Costco fuels exclusively for a few years (Costco round the corner), didn't have any issues with either. The fuel prices paid for the membership with ease. It's just fuel from the same outlets as shell, BP and all the supermarkets. Fine to use.
You'll know you're filling up with the good stuff if you spot a small green sticker on the pump that says “TOP TIER Detergent Gasoline.” As of early 2022, the following stations sold Top Tier gasoline in the U.S.: 76, ARCO, Aloha, Beacon, Breakaway, CITGO, Cenex, Chevron, Conoco, Costco Wholesale, CountryMark, ...
In order to qualify for Top Tier an additive must contain about three times the EPA detergent requirement. Costco's Kirkland Signature Gasoline additive dosage is about five times the requirement, which provided the most optimal cleaning impact during our engine testing.
Regardless though, AAA estimates that most Americans will fill up their tank anywhere between 45 and 55 times a year on average. So, yes, we can VERIFY that it is worth getting a wholesale membership to save on gas prices.
Why are Costco gas pumps so slow? It is part of Costco's psychological “marketing and sales” Plan so that you will think of more merchandise to purchase when you go into the store after having gassed up.
If you're able to save $0.17 on 14.5 gallons of gas, each fill-up at Costco saves you around $2.47 compared with getting gas elsewhere. If you're looking to cover your membership fee with gas alone, you'd need to get gas at Costco between 24 and 25 times per year. If you go around twice a month, you'll easily do that.
Simply put, you have to be a member in order to buy gas at Costco, and its gas stations are a daily reminder of that to traffic. Costco makes the bulk of its profits on membership fees -- not on markups inside its stores.
Should I use regular or premium gas? You should use the type of fuel the vehicle's manufacturer recommends. A vehicle that runs on regular gas will not run any better on premium fuel. Using premium gas in a vehicle designed for premium gas will help the car perform better and avoid damaging the engine with regular gas.
Introduction: My name is Fr. Dewey Fisher, I am a powerful, open, faithful, combative, spotless, faithful, fair person who loves writing and wants to share my knowledge and understanding with you.
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