Costco Members Line Up Longer to Save $0.50 on Gas as Prices Hit $4
U.S. average gasoline climbed from $2.98 to nearly $4 per gallon since late February, prompting Costco members to endure longer pump lines to save up to $0.50 per gallon. GasBuddy app downloads increased by 33% as crude supply fears followed U.S. and Israel operations disrupting Strait of Hormuz flow.
1. Gas Price Spike and Member Response
National average price for a gallon of regular gasoline jumped from $2.98 prewar to nearly $4 by late March, driven by closure of the Strait of Hormuz after U.S. and Israel attacks on Iran. At Costco fuel stations, members report waiting longer in pump lines to capitalize on discounts of up to $0.50 per gallon compared with street prices.
2. Impact on Costco Fuel Business
Costco’s fuel operations are seeing increased traffic as drivers juggle escalating living costs and fuel needs, while GasBuddy app downloads climbed by 33% for price scouting. This surge could drive higher in-warehouse sales and bolster membership renewals, but also pressures capacity management and risks margin compression if discount spreads widen.