Saving on gasoline at Costco… Sound familiar? You’ve probably heard over and over that Costco really takes care of its customers. But the question always comes up: do the discounts apply to their gas stations too? Well, in a world where filling the tank feels like a luxury, Costco shows up with surprises. But here comes the big question: is it really worth paying for a Costco membership just to fill up?
Costco isn’t really in the gasoline business, but it is in the membership business! Their cheap fuel (just like the famous $1.50 hot dog, yummy) is the best strategy to attract people. But if you’re only interested in saving on fuel, let’s see if the numbers work in your favor. And by the way, we’ll tell you a card trick that makes the savings even greater.
How many liters you need to break even
Here’s the info you’re really interested in: a Costco membership costs $65 per year, and the key is knowing how many liters of fuel you need to use for that fee to make sense. Let’s say you drive around 24,000 kilometers a year, and your car uses 9 liters per 100 km. That’s about 2,160 liters per year.
Now, if Costco in your city offers fuel at 20 cents less per liter, you save €0.20/liter. To make up the membership cost, you need to consume at least 325 liters per year. And if prices in your area are even lower, like in certain cities where the difference reaches €0.50/liter, you’d only need 130 liters to come out ahead. It’s just math.
The secret card that multiplies your savings
Here’s our best-kept secret: if you also use the Costco Anywhere Visa Card by Citi, you get 5% cashback on all your fuel purchases at Costco stations. So, if the liter costs €1.50, that 5% represents an additional 7.5 cents in savings by the end of the year… In total, you could be saving more than €0.27/liter between the discounted price and the cashback. What do you think?
What if you drive a lot?
This cashback is limited to the first $7,000 in fuel purchases per year, which equals about 2,300 liters. Unless you drive a V8 like an Amazon delivery driver or Lewis Hamilton… it’ll be hard to go over that limit.
The special case of New Jersey
For nearly 20 years, New Jersey forced Costco to sell fuel even to non-members. That changed in 2022. Today, only one store in Mount Laurel is still legally required to do so, due to a local agreement. But wait, there’s a legal loophole: anyone can pay with a Costco gift card… as long as it was purchased by a member. Another tip!
Beyond fuel: what they don’t tell you
Although this comparison focuses on gasoline, Costco offers other services that can help you save: good prices on tires, store-brand motor oil and even quality cleaning products. The fuel savings might not cover the full fee, but if you add everything else, it might be more worth it than you think.
What types of Costco membership are there?
Gold Star Membership: costs about €65 per year and lets you enter any Costco store and buy whatever you want, including gasoline.
Executive Membership: costs about €126 per year, but gives you 2% back on your annual Costco purchases (up to €1,000 in cashback). And in some states you can even enter half an hour before everyone else.
Costco doesn’t make money from gasoline, but you sure can save some. If you drive enough and want cheap fuel, the membership can pay for itself in less than half a year. And if you also use their Visa card, you might be saving more than anyone else without even noticing!