According to GasBuddy, Costco gas prices are close to 20% cheaper than the average gas station in your town. While not every Costco location has a gas station attached to it, if yours does, you’d be wise to use it regularly. Here’s everything you need to know about Costco gas to save money and time.

1. Costco Usually Loses Money on Gas

Think of the low gas prices at Costco like you’d think of their $1.50 hot dog meal or their $4.99 rotisserie chicken.

All 3 are loss-leaders designed to get you into the Costco parking lot.

After filling up your tank, they really hope you’ll enter the warehouse to buy stuff you had no idea existed, but CLEARLY can’t live without.

By keeping this in mind, you can avoid this retail trick and not give back your gas savings so quickly.

See Also: Costco Gas Hours: When They Open and the Holidays They Close

2. So How Cheap is Costco Gas?

Costco gas averages 20 cents (per gallon) cheaper than other stations. They haves actually won GasBuddy’s “Low Price” award 4 years straight.

I was told by a Costco gas employee that they “don’t jack up their gas prices when other stations do, this is done as a service to members and keeps shoppers coming back.”

EMPLOYEE TELLS ME HOW COSTCO PRICES THEIR GAS

I had a very friendly employee at my local Costco gas station tell me that they match the lowest priced gas station in a 12 mile radius of their location.

But they’ll never go under the lowest price, they’ll just match it and price their gas accordingly.

3. Costco Gas Hours of Operation

Because Costco makes very little (or no money) from their gas stations, they are not open 24/7.

They typically open at 6 a.m. and close at 9:30 p.m..

Kinda makes sense as it would be silly to pay for an employee 24/7 when they make very little money from gasoline sales.

PRO TIP: GET GAS WHEN STORE IS CLOSED

If you can swing it, always fill up your tank when the Costco doors are closed.

Specifically, get gas from 6 am – 10 am in the morning, or 8 pm – 9:30 pm in the evening.

You’ll avoid the line of cars getting gas and get on your way quickly.

See Also: How to Essentially Get a $60 Costco Membership for Free

4. Use the Costco Visa and Get 5% Back on Gas

You’re essentially double-dipping your savings with this tip.

Not only do you get to take advantage of the low gas prices at Costco, but you also get 5% back with the Costco Anywhere Visa from Citi.

The cool thing about this credit card is you’ll also get 4% back at all other gas stations.

You can only spend $7,000 on gas in any given calendar year, at which point they throttle you back to only 1% back on gas. You’d have to drive a TON to get to $7,000.

PRO TIP: WHY “GEAR HEADS” LIKE COSTCO GAS

I talked to a couple friends who are big car enthusiasts, especially older muscle cars, and asked them why they prefer to get gas at Costco.

They both said Costco sells Top Tier gasoline, which includes higher levels of detergent additives than the minimum required by the EPA. Apparently, this helps keep fuel injectors and intake valves cleaner, improving engine performance and longevity.

They also both loves the fact that Costco gas stations have high fuel turnover, meaning the gas is always fresh and less likely to have contamination or degradation. For older cars with high-performance engines they said this is A MUST.

Lastly, they’ve been told that Costco filters their fuel more aggressively, reducing the risk of water or sediment contamination.

5. Non-Costco Members Can’t Get Gas

Well…there is a single exception where non-Costco members CAN fill up their tanks.

If you’re paying with a Costco Shop card, you DO NOT need to be a member.

This is a really cool workaround for those who want to save money on gasoline.

The best way to buy a Costco Cash card is to have a member buy you one online or in the warehouse.

You can buy one all the way up to $500 in value.

Not only will the cash card let you buy discounted gas at Costco, but you can also shop in the warehouse.

Exception #2: Due to state law, you do NOT have to be a Costco member to get gas in the state of New Jersey. Thanks Rob for the tip!

See Also: 8 Cool Things You Can Do at Costco Without a Membership

6. Avoid Weekend Fill-Ups (if Possible)

You’ll typically have to wait in a line to fill up your gas tank on weekends at Costco.

To avoid this, the single best time to get gas at Costco is weekdays between 10-11 in the morning.

Most folks are busy at work and not on their lunch breaks yet.

7. Who Exactly Can’t Get Gas at Costco

These folks can’t take advantage of cheap Costco gas prices.

• Non-Costco Members: You’ll have to have a paid Costco membership to get gas (unless you’re paying with a Costco Cash card). Make sure you have your membership card with you as you’ll need to slide it. By the way, Executive members DO NOT get the same 2% cashback reward on gas that they get inside the Costco warehouse.
• Those Without a Visa Card: Actually, if you don’t have a Visa in your wallet you’re not completely out of luck. You can still pay with most PIN debit cards, Costco Credit, and Costco Cash cards.

See Also: 8 Smart Ways To Find the Cheapest Gas in Your Town

Ask the Reader: Besides filling up at Costco, what tips do you have for saving money on gas?

By Kyle James

Kyle James( Owner/Founder )

I started Rather-Be-Shopping.com in 2000 and have become a consumer expert and advocate writing about out-of-the-box ways to save at stores like Amazon, Walmart, Target and Costco to name a few. I’ve been featured on FOX News, Good Morning America, and the NY Times talking about my savings tips. (Learn more)