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