Warehouse clubs like Sam’s Club and Costco are famous for offering discounted gas prices to their members. But are they always the cheapest option when you factor in membership costs, location, and convenience? To find out, we analyzed real-world pricing data from GasBuddy and broke down the true costs of filling up at warehouse gas stations.
Price Comparison: Warehouse vs. Traditional Gas Stations
According to GasBuddy, Costco and Sam’s Club stations consistently offer prices that are 10 to 20 cents per gallon cheaper than nearby competitors. However, the savings are not universal and can vary based on region, local competition, and even time of day. In major metro areas, warehouse stations tend to offer some of the steepest gas discounts available, while in smaller towns or rural regions, the difference may be less pronounced.
Example from GasBuddy data:
- Local Station Average: $3.89 per gallon
- Costco Price: $3.69 per gallon
- Sam’s Club Price: $3.71 per gallon
On a 15-gallon fill-up, the savings would range from $2.70 to $3.00—significant if you are filling up frequently.
Factoring in Membership Fees
Both Costco and Sam’s Club require an annual membership to access their fuel stations:
- Costco Membership: Starts at $60 per year.
- Sam’s Club Membership: Starts at $50 per year.
If you drive often and consistently use their stations, the annual savings can easily offset the membership cost. However, if you do not live close to a location or fill up infrequently, the savings may not justify the membership fee.
Convenience and Location Considerations
Warehouse gas stations often have long lines, particularly during peak hours and weekends. Some locations are also farther out compared to traditional gas stations, requiring additional driving time and fuel to reach. If you are traveling significantly out of your way just to save a few cents per gallon, the extra mileage could cancel out any savings.
When Warehouse Gas Stations Offer the Best Value
- High-Mileage Drivers: Frequent drivers benefit the most from lower per-gallon prices.
- Proximity to Warehouse Locations: If you live or work near a Costco or Sam’s Club, the convenience factor improves.
- Stacking Additional Savings: Some warehouse clubs offer credit card promotions that boost your cashback on gas purchases, further increasing savings.
Other Ways to Save on Fuel
If a warehouse station is not nearby or convenient, you can still save on fuel through alternative methods. For example, using cashback apps like Fluz allows you to buy Shell gift cards or BP gift cards at a discount, earning instant cashback while filling up at thousands of locations nationwide.
Bottom Line
Warehouse gas stations like Costco and Sam’s Club can offer substantial savings, but they are not always the best choice for every driver. Be sure to factor in membership fees, convenience, and the availability of cheaper nearby stations. Tools like GasBuddy can help you make the most informed decision at every fill-up.
