Why is Costco gas so much cheaper

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Turbo29
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Re: Why is Costco gas so much cheaper

Post by Turbo29 » Mon Dec 03, 2018 8:52 pm

Regular at Costco today was $2.48. Most other stations in the area $2.75.

malabargold
Posts: 497
Joined: Fri Aug 08, 2014 8:16 am

Re: Why is Costco gas so much cheaper

Post by malabargold » Mon Dec 03, 2018 11:03 pm

Spread is greater when oil is dropping because they
buy daily

Spread is negligible when oil is rising.

Dregob
Posts: 7
Joined: Wed Sep 26, 2018 9:45 pm

Re: Why is Costco gas so much cheaper

Post by Dregob » Mon Dec 03, 2018 11:35 pm

2.09
Costco (230 reviews)
1510 North Pointe Dr & Broad St
Durham - North
4h ago

2.43
Gazelle (118 reviews)
2947 Chapel Hill Rd & University Dr
Durham - South
1h ago

34 cent range in Durham, NC.
Maybe I should rejoin Costco?

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willthrill81
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Location: USA

Re: Why is Costco gas so much cheaper

Post by willthrill81 » Mon Dec 03, 2018 11:51 pm

JoMoney wrote:
Mon Dec 03, 2018 8:43 pm
willthrill81 wrote:
Mon Dec 03, 2018 7:56 pm
I've heard that the gasoline at many discount fuel stations is older gasoline that, for whatever reason, didn't get sold in time to make it to the 'premier' stations. But that may be completely false.
What I've heard, is the primary difference is with the additives/cleaners some brands formulate into their mix that may reduce buildup (but there is some dispute in how much of a difference there is between brands, and how much the difference even matters over the lifespan of a car)
FWIW, Costco is listed on AAA's list of top-tier gas:
https://clark.com/cars/top-tier-gas-sta ... ngine-aaa/
I've heard that as well. Some mechanics I've spoken with think that the additives make a difference.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

RickBoglehead
Posts: 1180
Joined: Wed Feb 14, 2018 9:10 am

Re: Why is Costco gas so much cheaper

Post by RickBoglehead » Wed Dec 05, 2018 6:28 am

JoMoney wrote:
Mon Dec 03, 2018 8:43 pm
willthrill81 wrote:
Mon Dec 03, 2018 7:56 pm
I've heard that the gasoline at many discount fuel stations is older gasoline that, for whatever reason, didn't get sold in time to make it to the 'premier' stations. But that may be completely false.
What I've heard, is the primary difference is with the additives/cleaners some brands formulate into their mix that may reduce buildup (but there is some dispute in how much of a difference there is between brands, and how much the difference even matters over the lifespan of a car)
FWIW, Costco is listed on AAA's list of top-tier gas:
https://clark.com/cars/top-tier-gas-sta ... ngine-aaa/
Instead of hearing, read for yourself - https://www.toptiergas.com/consumers/

Among other info:

Fuels with lower-quality additive packages can build up deposits on fuel injectors and on intake valves. Others can build up deposits in combustion chambers and may lead to intake valve sticking. These lower levels of additives can have negative impacts on engine performance and vehicle responsiveness.

Do some brands have higher detergent levels?
Formulations are proprietary to each company, however, each formulation is screened for compliance to the TOP TIER™ requirements.

alaskantraveler
Posts: 203
Joined: Wed May 11, 2016 12:26 pm

Re: Why is Costco gas so much cheaper

Post by alaskantraveler » Wed Dec 05, 2018 3:27 pm

texasdiver wrote:
Sat Dec 01, 2018 2:58 pm

If you are using the Costco VISA you also get 4% cash back on all Costco gas purchases which has the effect of chopping an additional $0.12 off the price for $3/gallon gas. You don't always get the cash back at stations other than Costco. Depends on the location so if you want to be sure you are getting it you need to buy at Costco. There's been a lot of internet discussion of this point.
The 4% back should work on all regular gas stations, but will not work on grocery store gas stations like Safeway and Fred Meyer

alaskantraveler
Posts: 203
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Re: Why is Costco gas so much cheaper

Post by alaskantraveler » Wed Dec 05, 2018 3:32 pm

Im my hometown, Costco Gas is not usually more than 10 cents per gallon cheaper which doesnt make it worth it to me to go out of my way to Costco.

Where I have noticed the biggest price difference for Costco Gas is in Hawaii. Just left Kona, Costco is on the way to the airport. 80 cents per gallon cheaper than other gas stations. Same was true in Maui, and there are frequently long lines.

texasdiver
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Joined: Thu Jun 25, 2009 12:50 am
Location: Vancouver WA

Re: Why is Costco gas so much cheaper

Post by texasdiver » Wed Dec 05, 2018 5:13 pm

alaskantraveler wrote:
Wed Dec 05, 2018 3:27 pm
texasdiver wrote:
Sat Dec 01, 2018 2:58 pm

If you are using the Costco VISA you also get 4% cash back on all Costco gas purchases which has the effect of chopping an additional $0.12 off the price for $3/gallon gas. You don't always get the cash back at stations other than Costco. Depends on the location so if you want to be sure you are getting it you need to buy at Costco. There's been a lot of internet discussion of this point.
The 4% back should work on all regular gas stations, but will not work on grocery store gas stations like Safeway and Fred Meyer
Well there you go. Unfortunately around here Safeway and Fred Meyer are the two cheapest alternatives to Costco.

Chip
Posts: 2366
Joined: Wed Feb 21, 2007 4:57 am

Re: Why is Costco gas so much cheaper

Post by Chip » Thu Dec 06, 2018 6:03 am

Made the weekly trip to Costco yesterday. Gas stations closest to my house on the way there were 2.45. Station two blocks from Costco was 2.39. Costco was 1.99. :)

People were lined up two cars deep to get to the right side of the pumps. No lines for the left side, where we went and stretched the hose to reach the filler door on the driver's side. :)

sco
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Re: Why is Costco gas so much cheaper

Post by sco » Thu Dec 06, 2018 2:23 pm

willthrill81 wrote:
Mon Dec 03, 2018 7:56 pm
I've heard that the gasoline at many discount fuel stations is older gasoline that, for whatever reason, didn't get sold in time to make it to the 'premier' stations. But that may be completely false.
How would this work? The tankers transporting to all of the gas stations pull from the same distributors pipelines.

I have heard that in each tanker truck, each company dumps its own gallon of additives into the entire trailer.
At this point is a commodity.

That doesn't mean a low volume stations couldn't get water or contaminated fuel, just because they don't sell much. This would have to be a very low volume place with a large tank.

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willthrill81
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Location: USA

Re: Why is Costco gas so much cheaper

Post by willthrill81 » Thu Dec 06, 2018 2:25 pm

sco wrote:
Thu Dec 06, 2018 2:23 pm
willthrill81 wrote:
Mon Dec 03, 2018 7:56 pm
I've heard that the gasoline at many discount fuel stations is older gasoline that, for whatever reason, didn't get sold in time to make it to the 'premier' stations. But that may be completely false.
How would this work? The tankers transporting to all of the gas stations pull from the same distributors pipelines.

I have heard that in each tanker truck, each company dumps its own gallon of additives into the entire trailer.
At this point is a commodity.

That doesn't mean a low volume stations couldn't get water or contaminated fuel, just because they don't sell much. This would have to be a very low volume place with a large tank.
As I said, it may be a completely false notion. I don't know enough about the gasoline supply chain to know whether it's plausible.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

Nate79
Posts: 3708
Joined: Thu Aug 11, 2016 6:24 pm
Location: Delaware

Re: Why is Costco gas so much cheaper

Post by Nate79 » Thu Dec 06, 2018 2:44 pm

willthrill81 wrote:
Thu Dec 06, 2018 2:25 pm
sco wrote:
Thu Dec 06, 2018 2:23 pm
willthrill81 wrote:
Mon Dec 03, 2018 7:56 pm
I've heard that the gasoline at many discount fuel stations is older gasoline that, for whatever reason, didn't get sold in time to make it to the 'premier' stations. But that may be completely false.
How would this work? The tankers transporting to all of the gas stations pull from the same distributors pipelines.

I have heard that in each tanker truck, each company dumps its own gallon of additives into the entire trailer.
At this point is a commodity.

That doesn't mean a low volume stations couldn't get water or contaminated fuel, just because they don't sell much. This would have to be a very low volume place with a large tank.
As I said, it may be a completely false notion. I don't know enough about the gasoline supply chain to know whether it's plausible.
Costco also adds additional additives directly at the station. Details can be found online, example here:
http://www.neiwpcc.org/tanks2013old/pre ... uesday.pdf

RickBoglehead
Posts: 1180
Joined: Wed Feb 14, 2018 9:10 am

Re: Why is Costco gas so much cheaper

Post by RickBoglehead » Thu Dec 06, 2018 3:02 pm

Chip wrote:
Thu Dec 06, 2018 6:03 am
Made the weekly trip to Costco yesterday. Gas stations closest to my house on the way there were 2.45. Station two blocks from Costco was 2.39. Costco was 1.99. :)

People were lined up two cars deep to get to the right side of the pumps. No lines for the left side, where we went and stretched the hose to reach the filler door on the driver's side. :)
And we wonder why America isn't as competitive as some other countries... :(

sco
Posts: 822
Joined: Thu Sep 24, 2015 2:28 pm

Re: Why is Costco gas so much cheaper

Post by sco » Thu Dec 06, 2018 9:48 pm

willthrill81 wrote:
Thu Dec 06, 2018 2:25 pm
sco wrote:
Thu Dec 06, 2018 2:23 pm
willthrill81 wrote:
Mon Dec 03, 2018 7:56 pm
I've heard that the gasoline at many discount fuel stations is older gasoline that, for whatever reason, didn't get sold in time to make it to the 'premier' stations. But that may be completely false.
How would this work? The tankers transporting to all of the gas stations pull from the same distributors pipelines.

I have heard that in each tanker truck, each company dumps its own gallon of additives into the entire trailer.
At this point is a commodity.

That doesn't mean a low volume stations couldn't get water or contaminated fuel, just because they don't sell much. This would have to be a very low volume place with a large tank.
As I said, it may be a completely false notion. I don't know enough about the gasoline supply chain to know whether it's plausible.
The detergents can be different, and perhaps they make some difference for some nitch cars over time. The real concern is that the fuel isn’t contaminated, but it doesn’t matter how much you pay that can still happen. Very rare these days though.

FoolStreet
Posts: 574
Joined: Fri Sep 07, 2012 12:18 am

Re: Why is Costco gas so much cheaper

Post by FoolStreet » Thu Dec 06, 2018 11:58 pm

Elysium wrote:
Sat Dec 01, 2018 1:33 pm
I am saving a dollar almost per gallon lately, up to the tune of $20 every full fill. This is such a great deal! why is that so? talk about free lunches.. I will end up saving almost $1000 a year at this rate :sharebeer
When will Costco start offering car charging?

vwgrrc
Posts: 61
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Re: Why is Costco gas so much cheaper

Post by vwgrrc » Fri Dec 07, 2018 1:52 am

$1.79 for the COSTCO in my neighborhood. $1.89 for EXXON :sharebeer

RickBoglehead
Posts: 1180
Joined: Wed Feb 14, 2018 9:10 am

Re: Why is Costco gas so much cheaper

Post by RickBoglehead » Fri Dec 07, 2018 8:06 am

FoolStreet wrote:
Thu Dec 06, 2018 11:58 pm
Elysium wrote:
Sat Dec 01, 2018 1:33 pm
I am saving a dollar almost per gallon lately, up to the tune of $20 every full fill. This is such a great deal! why is that so? talk about free lunches.. I will end up saving almost $1000 a year at this rate :sharebeer
When will Costco start offering car charging?
They already do.

Launched in 2006, ended in 2011.

Currently in Salt Lake City, Hawaii, Torrance CA, ...

FoolStreet
Posts: 574
Joined: Fri Sep 07, 2012 12:18 am

Re: Why is Costco gas so much cheaper

Post by FoolStreet » Fri Dec 07, 2018 8:25 am

RickBoglehead wrote:
Fri Dec 07, 2018 8:06 am
FoolStreet wrote:
Thu Dec 06, 2018 11:58 pm
Elysium wrote:
Sat Dec 01, 2018 1:33 pm
I am saving a dollar almost per gallon lately, up to the tune of $20 every full fill. This is such a great deal! why is that so? talk about free lunches.. I will end up saving almost $1000 a year at this rate :sharebeer
When will Costco start offering car charging?
They already do.

Launched in 2006, ended in 2011.

Currently in Salt Lake City, Hawaii, Torrance CA, ...

Cool. Thanks. Just checked.

Torrance has 16 stalls(20 amp, 207v). $.15/kWh

Salt Lake is 6 stations. $.10/kWh

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