Where Does Costco Get Their Gas? Read if You Buy Gas at Costco!

Ever wondered, “Where Does Costco Get Their Gas?” Our article reveals the source of Costco’s fuel, shedding light on what sets their gas apart. Discover the origins and quality assurances behind this popular retailer’s gasoline.

Where does Costco get their gas from? The image shows a white SUV in front of a Costco store

Costco gets its gas from major refineries, plus local and regional distributors. Since it’s so large, it can buy larger quantities of gas at a lower price. 

Customers regularly report that Costco gas is considerably cheaper than the competition. As far as quality, according to their website, Costco guarantees the quality of Kirkland’s Signature gas and that it does comply with industry standards.

So, while the answer to “where does Costco get their gas?” is interesting, you can be certain the quality is there.

Where does Costco get their gas? 

There are around 600 Costco locations in the US. They’ve become synonymous with low costs and helping you save money. 

With the rising cost of fuels across the country, they are now also a popular destination for getting gas. Costco gas prices have consistently been lower than the competition, so many wonder: “Where does Costco get their gas?”

Costco gets its gas directly from refineries or from wholesale regional distributors. Since Costco is a massive operation, they can buy gas in bulk, therefore getting it at a lower cost. 

On the other hand, many fuel stations are either independent or smaller. So, they cannot buy as much gas, which is where the discounts come in. 

This is why Costco gas is so cheap

Many people want to know: “where does Costco get their gas from?”

They also wonder how does Costco manage to keep gas so cheap. It all has to do with how Costco makes money. 

People need to pay a membership to buy at Costco. With this membership, they can access the stores and the gas stations. 

It’s long been known that this membership is crucial for Costco’s profit. At one point, it comprised 75% of the company’s income

At the same time, the only way to fill up at Costco is by being a member. So, by offering gas at a lower price, Costco attracts customers to pay for their membership. 

Is the Costco membership worth it for only buying gas?

This is a common question that people have. Does becoming a Costco member really mean having plenty of savings? Not necessarily. 

Costco has consistently had the lowest gas prices in the market. Still, the difference might not be enough to justify the membership. When writing this article, it averaged $60; to make up for this investment, you’d have to buy Costco gas more than 30 times in a year. 

At the same time, Costco is worth the investment if you use the membership to buy other stuff. In fact, the company bets on this and wants its customers to stop for gas and buy at Costco stores, be it food, clothing, or technology. 

Why Should You Buy Gas At Costco?

The cost of living has increased considerably over time, and more people are looking to save as much money as possible. Geopolitical tensions have caused spikes in the cost of fuel, and this is one of the aspects people want to reduce their spending on. 

Now that we’ve seen where does Costco get their gas from, we understand why it’s cheaper. This is the first reason why you should use a Costco gas station. 

There are other reasons why Costco is worth it. Another important factor is that you can also exploit the benefits of the Costco membership. Purchasing additional items can help you save money in other aspects of your life. 

Logistics also play a part in why you should buy gas here. Knowing that there’s a cheap gas station at every Costco can help if you need to fuel up. 

Is Costco gas “top tier” fuel?

This is another question many people have, and it goes hand in hand with where Costco gets its gas from. The reality is that Costco gas might be cheaper, but it fulfills all the required industry standards. 

Given that gas sold at Costco is cheaper, people assume that it’s bad gas. However, the truth is the opposite happens. 

Since March 2014, Costco’s Kirkland Signature gasoline has the TOP TIER™ certification. Not only that, but the company maintains strict quality guidelines. After all, Costco is too large an operation to risk a quality issue. 

What You Should Know Before Getting Gas at Costco

So far, we’ve answered, “Where does Costco get their gas from?” We’ve also seen some of the benefits, including low prices. However, there are things that you should know before buying gas at Costco.

Costco Gas Membership Requirements

As we’ve said, you must be a member to pump gas at any Costco Gas station. Fortunately, getting a membership card is easy.

All you have to do is show up at Costco, apply for a membership, and pay the membership fee (which averages $60 in 2023). While it’s $60 that you have to pay upfront, you’ll likely recover the investment over time if you’re an active user. 

Considerations for Using Costco Gas

There are some aspects to consider if you’re buying Costco’s gas. While Costco gasoline is cheaper, it might not necessarily be a smooth operation. 

Costco gas pumps do not accept cash. In fact, you can only pay with Visa cards (if you’re paying with credit), including the Costco Visa Card. You can also pay with PIN debit cards and Costco shop cards. You can also use Costco gift card, as well.  

In addition, all Costco fuel stations are self-service, and you must turn off your vehicle, regardless of the weather. So, if you live in a colder state, it’s best to carry a coat and some gloves. 

Costco gas stations serve regular gas and premium gas, as well as diesel in some locations.  

Gas Lines at Costco

Costco gas is famous for being cheaper per gallon than the competition, so you can expect long lines at their pump stations. There have been reports of people waiting up to an hour, which is a long time, to get gas. 

Some people have worked around this by having a family member do some shopping while they are away, but this might not always be the case. So, if you’re going to pump gasoline at Costco, it might help to be patient.

Reports state that going on a Monday can be quicker, as there’s usually less demand than before or during the weekend. So, you can also consider this when going to a Costco. 

Conclusion to “Where does Costco get their gas from?”

In a time where everybody is looking to save money on gas, Costco has risen in popularity, thanks to its numerous gas stations and low prices.

These low prices have people asking: “where does Costco get their gas from?”

The answer is that Costco gets its gas from major refineries and wholesale distributors. They can get significant discounts because they buy so much of it, which translates to the consumers. 

Costco gas is regularly ranked as the cheapest in the country, giving it a reputation. Therefore, while you can save some crucial bucks filling up at Costco, you might have to pay in time. 

The fuel stations at Costco tend to have long lines. Plus, you can only pay with certain cards, and you must be a member to use them.

These are all things to consider but aren’t significant enough to counter the savings you could have. 

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