Gas that’s 25 cents cheaper? Why warehouse stations may have the lowest pump prices

(NEXSTAR) – While gas prices have been on the decline in recent weeks, they largely remain above those we were paying at this time last year. And with uncertainty about when those prices may come down even further, you could find yourself seeking out the cheapest fuel. 

Rather than burning through more gas driving around, you may need to look no further than your nearest warehouse station. 

In most cases, your local Costco, Sam’s Club, or other bulk retailers are likely to sport the lowest fuel prices in the area. 

How do they do it, you ask?

It’s largely because they’re “willing to take less margin” in exchange for bringing people to their stores, Patrick De Haan, the head of petroleum analysis for GasBuddy, previously told Nexstar. 

Like rotisserie chicken and the $1.50 food court combo, gas serves as a way for these warehouse brands to attract customers to their stores. 

“They want to draw you to the location, because often when you’re filling up gas at Costco, you’re like, ‘Well, I might as well go in as well, you know, I need a couple things.’ Then people go in and end up spending more on higher margin items,” De Haan explained, noting that Costco and Sam’s Club aren’t losing money on gas, either. 

The volume of gasoline Costco and Sam’s Club warehouses purchase also helps to offset the costs, oil industry consultant Andrew Lipow previously told Nexstar’s NewsNation.

De Haan previously told Consumer Reports that gas at warehouse stations is typically anywhere between 5 cents and 25 cents cheaper per gallon than at other nearby gas stations. When prices rise elsewhere, the warehouse stations are likely to “hold their prices down for longer,” he said. 

You do, however, have to contend with getting a warehouse membership. Most Sam’s Club fuel stations are “members only,” though there are some open to the public. At those locations, members are still able to receive a discount. 

Costco’s fuel pumps are also reserved for members or those with a Costco Shop Card. You do not need to be a member to use a Costco Shop Card, but only members can purchase them. 

BJ’s Wholesale also offers gas discounts to members who purchase eligible products in-store or online.

Is it actually cheaper?

Generally, yes. Below, we compared the price for a gallon of regular gasoline at the nearest Costco, Sam’s Club, and BJ’s Wholesale (where applicable) with the average pump price for 10 U.S. metro areas. The latter were collected from AAA.

The above table isn’t an exact science. A gas station could have a lower price than the warehouse across the street and the metro average. The warehouses are usually on the lower end of the area’s pump prices.

Which warehouse has better gas?

While the prices may be relatively similar between Costco, Sam’s Club, and BJ’s, the type of gas varies.

They generally offer unleaded, premium, and diesel fuels (here’s how to know which you should be getting), but only Costco offers Top Tier fuel. The fuel, according to Top Tier, is intended to keep engines cleaner by reducing deposit buildup on injectors and intake valves. A 2016 study by AAA found that Top Tier gasoline keeps engines 19 times cleaner. 

“Yes, Top Tier gas is worth the extra money,” CarFax reported. “The benefits are not a myth.” 

Costco nearly didn’t get into gasoline

Believe it or not, Costco fuel stations – including its new stand-alone locations – almost didn’t exist. 

“We were so reluctant to get into the gasoline business, you wouldn’t believe it,” Costco co-founder Jim Sinegal told The Wall Street Journal last year, explaining that “the pressure on making a profit was always very difficult.”

It took eight attempts for Sinegal to be sold on testing the offering, but, as he recounts it, “they were successful right off the bat.”

Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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