Photo: Alexandru Nika (Shutterstock)
It’s March 14, and the average cost for a gallon of gas in the U.S. is $4.325, up from $3.488 one month ago, and slightly down from the record-setting $4.331 last week. The good news: According to the latest report from AAA Gas Prices, this trend “may remove some of the extreme upward price pressure consumers have found at the pump.” The bad: That same report says the market remains volatile, and prices could surge yet again.
We all want to know how to get the most out of every drop of gas right now. Common consensus dictates that gas is always cheaper at warehouse clubs like Costco or Sam’s Clubs. An annual Costco membership is $60 for their Gold plan and $120 for an Executive membership. But if you’re not already part of the club, is it worth purchasing a Costco membership exclusively for the potential gas savings?
We did the math to see how much money you’d save if you bought a Costco membership now solely to take advantage of their gas prices for the rest of the year.
Is it worth it to get a Costco membership just for the gas?
Gas prices at outlets like Costco and Sam’s Club have, in the past, been reported to be as much as 30 cents less per gallon than regular gas stations. Our goal here is to see if signing up for the most affordable Costco membership just to buy gas will save you money in the long run, assuming the surge in fuel prices doesn’t dip significantly any time soon.
Small to midsize cars generally hold 12 gallons of gas, while trucks and larger SUVs could hold 16 gallons or more, according to Rocket HQ. For this experiment, let’s meet in the middle and use a 14-gallon fill-up as our benchmark. Also for math-related ease, let’s assume that you fill your tank about once a week.
Because there’s no apparent difference in gas-related deals between the membership plans, we’ll work with their cheapest plan, which costs $60 annually.
I used the AAA Gas Prices map and GasBuddy to pull sample gas prices from one of the most affordable and one of the most expensive cities at the moment.
Columbus, Ohio: Costco = $3.89 / Shell = $3.99 / Kroger = $4.09Inglewood, Calif.: Costco = $5.39 / 7-Eleven = $5.64 / Chevron = $5.89The cost of gas without a Costco membership
In Columbus, your cheapest non-Costco option is Shell. You pay $3.99 per gallon x 14 gallons = $55.86 per tank. Fill up once a week, and you’re paying $2,904.72 in gas per year.
In Inglewood, you find a 7-Eleven to get $5.64 per gallon. You get a Slushie to numb the pain. $78.96 per tank, and $4,105.92 for the year.
The cost of gas with a Costco membership
In Columbus, $3.89 per gallon x 14 gallons = $54.46 to fill up your tank. If you fill you tank once a week, that’s $2,831.92 per year. Tack on the $60 for your Costco Gold membership that got you these prices in the first place, and you’re at $2,891.92.
In Inglewood, CA: $5.39 per gallon x 14 gallons = $75.46 per tank. $3,923.92 per year. Plus the cost of membership, your total is $3,983.92.
You save $1.40 per tank and $12.80 in gas per year in Ohio.
You save $3.50 per tank and $122 in gas per year in Calif.
To see how gas prices compare in your area, plug your zip code into GasBuddy.
Other considerations
Looking at that $1.40 per tank in Ohio, you might think that the savings are less than astronomical (at least in places where gas is relatively cheaper already). However, weigh in the fact that you can use your Costco membership for other benefits, and the annual purchase could pay off in other, grocery-related ways.
Then again, you’re not exactly the first person thinking about joining the Costco club solely for their gas prices. Far from it: Business Insider reports (and r/Costco concurs) that as these savings catch on, it’s harder and harder to physically get a spot at the station. Consider whether long lines to get to the pump are worth it for you.
Finally, all of this depends on whether or not there’s even a Costco conveniently located near you. What if you have to waste gas driving out to a Costco station, and then wait in a long line once you’re there? In those cases, the gas savings might not be worth the additional hassle.
The takeaway: Costco gas is cheaper for members
On a yearly basis, the Costco Gold membership is worth its cost in gas savings. Plus, you’ll be able to use your membership for grocery and home goods shopping.
However, if you’d have to go out of your way to get to a Costco and you shudder at the prospect of waiting in extremely long lines for marginally cheaper gas, then the savings simply might not be worth it for you.
