Ask most people to name the best deal at Costco, and you’ll hear about the rotisserie chicken or the food-court hot dog.
Costco would point you somewhere else: the gas station out in the parking lot.
On the company’s Sept. 24 earnings call, CEO Ron Vachris said Costco estimates it “saved our members over $3.2 billion versus the average price at the pump” in its markets during the fiscal year that just ended.
He also said the share of U.S. member households buying gas at Costco hit an all-time high.
Put that $3.2 billion in perspective. Costco collected $5.907 billion in membership fees last fiscal year, according to its earnings release. By the company’s math, members got back more than half of what they paid to join, and they did it at the pump.
The timing couldn’t be better. Regular gas averaged $4.478 a gallon nationally the week of Sept. 21, according to the U.S. Energy Information Administration. That’s up about 43 cents from mid-August.
Now, a little skepticism. That $3.2 billion is Costco’s estimate, and averages hide a lot. Here’s how to figure out whether you’re getting your share, and how to squeeze more out of every fill-up, at Costco or anywhere else.
1. Run your own break-even number
Start with the average. Costco has 84.1 million paid members, according to the earnings call. Divide $3.2 billion by that, and you get about $38 per member. That includes plenty of people who never buy gas there, so regular customers do better.
How much better depends on the gap where you live. GasBuddy data reported by the San Francisco Chronicle found Costco 6 to 20 cents a gallon cheaper than nearby Bay Area stations this spring. Your local gap could be bigger or smaller.
So do your own math. Suppose you buy 15 gallons a week. That’s 780 gallons a year. Save a dime a gallon, and you’ve pocketed $78 — more than the $65 Gold Star membership fee. Save 20 cents, and it’s $156.
Check the Costco price against the stations you’d otherwise use for a couple of weeks, and you’ll know your number. (Not a member? There’s a workaround with a Costco Shop Card.)
2. Pay with a card that pays you back
The pump price is only half the deal. How you pay matters, too.
Costco’s credit card, the Costco Anywhere Visa from Citi, pays 5% cash back on gas at Costco and 4% at other eligible stations, according to Citi. Those two categories share a $7,000-a-year spending cap, after which you earn 1%.
At $4.48 a gallon, 5% works out to about 22 cents a gallon, on top of whatever Costco’s lower price saves you.
The catch: Citi pays those rewards once a year, as a certificate you redeem at Costco. If you’d rather have cash back you can spend anywhere, whenever you like, shop around. You can compare cash-back cards in our Solutions Center.
One rule matters more than any reward: Pay the balance in full every month. Credit card interest will wipe out 22 cents a gallon in a hurry.
3. Use a cash-back app when you’re not near a Costco
Not every fill-up happens near a warehouse. For the rest, an app can help.
Upside says you can earn up to 25 cents a gallon in cash back at participating stations, and that you can use it on top of your credit card rewards.
As with any “up to” offer, your results will depend on the stations near you.
See how Upside, GasBuddy and Gas Guru compare in “The Best Gas Price Savings and Rewards Apps for 2026.”
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4. Stop buying premium your car doesn’t need
Here’s the gas mistake that dwarfs all the others.
A 2016 AAA study found U.S. drivers were wasting $2.1 billion a year on premium gas in cars designed for regular. About 16.5 million drivers had done it in the prior year. AAA’s testing found no meaningful gain in horsepower, fuel economy or emissions.
“‘Premium’ does not mean ‘better’ if your vehicle doesn’t require it,” said Greg Brannon, AAA’s director of automotive engineering.
The federal government’s fueleconomy.gov agrees: Use the octane your manufacturer requires, and remember that most gasoline cars are designed to run on regular. Check your owner’s manual. If it says regular, you’re paying extra for nothing.
For more ways to stretch a tank, see “10 Simple Tricks to Use Less Gas.”
5. Don’t count on your Executive reward at the pump
Costco’s $130 Executive membership pays a 2% reward on most purchases, up to $1,250 a year. It’s a good deal for big spenders.
But gas isn’t one of those purchases. Citi, Costco’s credit card partner, lists gas among the Executive reward’s key exclusions.
If you upgraded thinking your fill-ups would help you earn back the extra $65, redo the math. The pump helps pay for your membership. It won’t help pay for the upgrade.
The bottom line
Costco’s $3.2 billion in savings is a company estimate, it’s an average across tens of millions of people, and it doesn’t count the time you spend in a gas line. Still, the math is easy to run, and for plenty of members, the pump alone covers the fee.
Stack a lower price with the right card and the right octane, and you can shave a real chunk off a bill that’s been climbing every week. For more ways your membership can pay for itself, see “14 Secret Costco Perks That Pay for Your Membership Fee.”
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