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Costco's Strategy Behind Affordable Gas Prices Amid Soaring Costs

KVIA•Sunday, May 31, 2026 at 9:00 AM•CNN Newsource

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Costco has experienced unprecedented demand for its gas, prompting the company to call in tanker trucks multiple times daily to keep up with customer needs. With gas prices exceeding $4 nationwide, Costco's stations are attracting more members who are eager to save, as the retailer typically sells gas for about 30 cents less per gallon than competitors. Despite the low margins on gas sales, Costco profits from increased foot traffic in its warehouses, where many customers purchase additional items. The company aims to maintain this momentum even as gas prices fluctuate, emphasizing customer loyalty and value amidst rising costs.

Key Details: • Costco's gas stations have seen a significant increase in customers over the past three months. • Gas prices have surged above $4 nationally, with Costco undercutting local stations by about 30 cents per gallon. • Approximately half of customers who buy gas at Costco also shop in the warehouse, increasing overall sales. • Costco has extended discounts on other products like meat and eggs to enhance customer value. • The company is focused on maintaining customer loyalty despite potential declines in gas prices.

retail gas-prices costco consumer-savings loyalty

People & Organizations

CostcoGary MillerchipRoland Vachris

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