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Zorro

(16,296 posts)
Sun Apr 10, 2022, 07:07 PM Apr 2022

Experts explain why Costco is cutting gas prices much more and faster than other major chains

SAN DIEGO (KGTV) — While Costco has always been one of the cheaper options for gas, they seem to now be cutting gas prices by a much larger amount and much quicker than the major gasoline chains. Friday, the cost of regular at local Costco locations was $5.29, which is about 56 cents lower than the San Diego County average. While the average price has dropped 15-20 cents from the peak in March, Costco has lowered its already cheaper prices by more than twice that amount.

“Almost every station on GasBuddy's list of lowest prices in San Diego is now Costco," industry analyst Patrick De Haan of GasBuddy told ABC 10News.

De Haan says prices should be dropping significantly at all gas stations in California because most of the refinery issues that had helped spike prices are over. But while other gas chains are dropping prices gradually, De Haan says Costco is cutting prices aggressively. “I think they’re passing down inevitable discounts much faster. Cheers to Costco for bringing down prices.”

There are several reasons why Costco can charge less. One is that its business model on all of its products is to take a lower margin. Second, because Costco sells so much gas so quickly, it does not have to sit on inventory. While other stations may still be selling gas they bought at peak prices one or two weeks ago, Costco is likely selling gas it purchased more recently and at a lower price.

https://www.10news.com/news/local-news/experts-explain-why-costco-is-cutting-gas-prices-much-more-and-faster-than-other-major-chains

Another good reason to have a Costco membership.

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Experts explain why Costco is cutting gas prices much more and faster than other major chains (Original Post) Zorro Apr 2022 OP
You can take my Costco card over my... Enter stage left Apr 2022 #1
in NJ you can purchase Costco NJCher Apr 2022 #7
The gas lines at.costco always overflow down the street Demovictory9 Apr 2022 #2
The Costco gas stations in WA are open a few hours earlier and later than regular store hours -- fierywoman Apr 2022 #12
At our local Costco, the lines are shortest first thing in the morning and just before closing. ificandream Apr 2022 #28
It's good business for them, will attract new members at $50+ and keep current Hoyt Apr 2022 #3
Instead of making their money on hot dogs and candy bars, multigraincracker Apr 2022 #17
I can see small gas stations raising price knowing they'll have to pay significantly more soon. But Hoyt Apr 2022 #21
Inventory turnover is tremendous at Costco. empedocles Apr 2022 #4
There's pretty much always a truck at the costco I go to sboatcar Apr 2022 #5
Doesn't seem to matter at COSTCO which side your tank is on. Hulk Apr 2022 #20
we get our gas at Costco too. Best price around yellowdogintexas Apr 2022 #6
Yes. Not a fan of Citibank mountain grammy Apr 2022 #9
Gas in Uvalde, TX is $3.63 at H.E.B. Hulk Apr 2022 #18
I would have to make a 90 mile round trip to find a Costco MichMan Apr 2022 #8
Same here. Plus the same for Trader Joes and multigraincracker Apr 2022 #19
My nearest COSTCO is 200 miles away. James48 Apr 2022 #10
You don't need a Costco membership to buy gas there. At least not in NJ. Credit card sales only. Pepsidog Apr 2022 #11
Definitely cheapest though Sycuan is also much cheaper than elsewhere in San Diego. Liberty Belle Apr 2022 #13
My local BJs is cheap enough, plus they run 25 cents off promotions. CaptainTruth Apr 2022 #14
"Refinery issues" - they use that one every time here in CA NullTuples Apr 2022 #15
Oh no.....the gQp is running out of reasons to hate..... Hulk Apr 2022 #16
I just filled up with premium for $4.14 a gallon at Costco. Ferrets are Cool Apr 2022 #22
4.50 in honolulu costco nt msongs Apr 2022 #23
You guys need to put some oil platforms SCantiGOP Apr 2022 #24
And it is high quality gas. Ohiya Apr 2022 #25
I paid 4.29 a gallon at Costco the other day, Yo_Mama_Been_Loggin Apr 2022 #26
$4.29 is what I paid last week at Vallejo Costco. $.05 cheaper than my fill up the week before. diane in sf Apr 2022 #27

fierywoman

(8,105 posts)
12. The Costco gas stations in WA are open a few hours earlier and later than regular store hours --
Sun Apr 10, 2022, 09:10 PM
Apr 2022

lines are usually much shorter.

 

Hoyt

(54,770 posts)
3. It's good business for them, will attract new members at $50+ and keep current
Sun Apr 10, 2022, 07:27 PM
Apr 2022

members at renewal.

multigraincracker

(34,090 posts)
17. Instead of making their money on hot dogs and candy bars,
Sun Apr 10, 2022, 09:23 PM
Apr 2022

they make much more on memberships.

I love the BS that big gas stations spread about "we have to sell the gas we bought already at a higher price. Yet they jump the pump price on rumors that there might be trouble in the Middle East, the next hour. This while their tanks are still full of low price gas they bought last week.

 

Hoyt

(54,770 posts)
21. I can see small gas stations raising price knowing they'll have to pay significantly more soon. But
Sun Apr 10, 2022, 09:30 PM
Apr 2022

the higher prices are definitely too sticky on the way down.

empedocles

(15,751 posts)
4. Inventory turnover is tremendous at Costco.
Sun Apr 10, 2022, 07:30 PM
Apr 2022

At my local NoVa Costco, a trucker said they were doing 5 tankers a day minimum. They do not sell older/higher priced gas.

sboatcar

(558 posts)
5. There's pretty much always a truck at the costco I go to
Sun Apr 10, 2022, 07:47 PM
Apr 2022

I was just thinking about that this week, I went there twice, and both times there was the delivery truck there and lines of people waiting for gas (though lots of people don't seem to get which side of their car the gas filler is)

 

Hulk

(6,699 posts)
20. Doesn't seem to matter at COSTCO which side your tank is on.
Sun Apr 10, 2022, 09:28 PM
Apr 2022

That's one of the nice things about the COSTCO's I've gone to across the country...their hoses will meet the far side of the vehicle for fueling. Wish all stations would follow their lead.

yellowdogintexas

(22,722 posts)
6. we get our gas at Costco too. Best price around
Sun Apr 10, 2022, 08:39 PM
Apr 2022

even in Texas which appears to be running about $1.75 a gallon lower than California.

I guess you all know that any gasoline purchased using your Costco card gets the same rebate percentage as if you bought it at Costco?

I do love that little email with the rebate in February

 

Hulk

(6,699 posts)
18. Gas in Uvalde, TX is $3.63 at H.E.B.
Sun Apr 10, 2022, 09:25 PM
Apr 2022

Yikes! Gas prices are dropping. What is the gQp going to turn to now to rile up their base (of simple idiots)?

MichMan

(13,200 posts)
8. I would have to make a 90 mile round trip to find a Costco
Sun Apr 10, 2022, 08:46 PM
Apr 2022

Would use more gas than I would save. Also, I have a principle not to frequent retailers that charge me a fee to shop there.

multigraincracker

(34,090 posts)
19. Same here. Plus the same for Trader Joes and
Sun Apr 10, 2022, 09:27 PM
Apr 2022

I love their stores too. There is a new one going up in East Lansing and I go that way twice a month.

Liberty Belle

(9,611 posts)
13. Definitely cheapest though Sycuan is also much cheaper than elsewhere in San Diego.
Sun Apr 10, 2022, 09:17 PM
Apr 2022

Fortunately I have 2 Costcos near me, 1 just 5 minutes away, the other 15. I went on a weekday and the line wasn't too bad, maybe 5-10 minutes max. Well worth it.

Costco memberships are totally worth it. We save a lot on groceries (and not everything is in bulk anymore, though some items are), clothes, gifts, electronics etc. I just got a laptop computer there - better quality for less than elsewhere.

I've been a member from before it was Costco, back when it was Price Club.

CaptainTruth

(7,222 posts)
14. My local BJs is cheap enough, plus they run 25 cents off promotions.
Sun Apr 10, 2022, 09:18 PM
Apr 2022

BJs is close by, Costo is a drive (how much is my time worth?), & BJs frequently runs promotions where if you buy 2 products of a specific brand you then get 25 cents a gallon off, on that day.

It works for me.

NullTuples

(6,017 posts)
15. "Refinery issues" - they use that one every time here in CA
Sun Apr 10, 2022, 09:19 PM
Apr 2022

I have a fair layperson's understanding of how & why our market is often treated as separate. But I think perhaps De Haan may have forgotten that prices spiked here at the same time as everywhere else in the nation. It was sort of a big deal.

 

Hulk

(6,699 posts)
16. Oh no.....the gQp is running out of reasons to hate.....
Sun Apr 10, 2022, 09:22 PM
Apr 2022

Now if inflation is under control, the poor gQp is going to have to find boogey-men that they can scare the stooges in amuriKKKa with. This was their poison for politics...."high gas prices", brought on, of course, by not letting our suffering oil companies have free rein over the land and waters off the USA to rape the land of every fucking drop of crude they can harvest.

What can they do? Just asking....cause this pedophile scare tactic is not catching on as fast as they had hoped.

Ohiya

(2,433 posts)
25. And it is high quality gas.
Sun Apr 10, 2022, 10:18 PM
Apr 2022

I almost always fill up at Costco, but recently I got gas at a couple of other places. I thought something was wrong with my car. It was running so badly. But, after a more recent fill up at Costco, things are back to normal.

diane in sf

(4,088 posts)
27. $4.29 is what I paid last week at Vallejo Costco. $.05 cheaper than my fill up the week before.
Sun Apr 10, 2022, 11:20 PM
Apr 2022

Gas is probably more expensive in the more bourgeois counties around the Bay, but Solano County is the Mississippi of the Bay Area counties.

I run my 36mpg econo car on regular, not exquisite or supreme.

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