Why Costco is winning the gas war by refusing to behave like a normal gas station

With the conflict in Iran pushing gas prices higher, Costco’s fuel program has quietly become one of the most effective ways for consumers to cut expenses. Even as national averages climb, Costco’s gas is typically $0.05 to $0.40 per gallon cheaper than local competitors’, savings that can be crucially efficient during a price surge. Costco’s edge comes from its membership model. A $65 Gold Star or Business membership, or the $130 Executive membership, unlocks access not only to the warehouse’s discounted goods but also to its lower fuel prices. “I got gas at Costco for $2.99 and it’s $3.60 everywhere else. Wild it’s so much cheaper at Costco,” one user wrote on X. Costco operates roughly 550 gas stations across the U.S., giving members plenty of opportunities to take advantage. Gas isn’t a small line item for the retailer, either. Costco reports that fuel accounts for about 10 percent of total net sales, a steady revenue stream that helps the company keep prices lower. When gas p