"First, we asked fuel market analyst Patrick De Haan at GasBuddy, an app that finds deals, how many gallons the typical American driver buys in a year. He said 600, which works out to roughly 40 purchases of 15 gallons each. We then identified 13 Costco warehouses in metro areas that cover the continental US and compared their gas station prices to GasBuddy's average price for those local markets on the same day."
"In Chicago, given the large size of its county, we adjusted the market price to better reflect gas stations in the immediate vicinity of the selected Costco warehouse. Other spot checks showed the GasBuddy county averages to be on par with gas prices nearest the warehouses we looked at. As of Monday, Costco's gas price advantage ranged from $0.11 to $0.55, which we multiplied by 600 to arrive at an annual payback score."
"Costco sells gas for around $0.20 per gallon, less than what typical fuel stations charge. In many cases, the savings on gas alone can offset the $65 annual membership fee. We checked prices in 13 metro areas to see where Costco members benefit most. One of Costco's biggest ways to save doesn't involve setting foot inside a warehouse. The wholesale club has been selling gasoline since 1995, and many US warehouses now have pumps for members to top up."
Costco offers gasoline at meaningful per-gallon discounts versus typical fuel stations, frequently around $0.20 less per gallon. The company has sold gasoline since 1995 and plans a stand-alone gas station in California. The typical American driver purchases about 600 gallons per year, roughly 40 purchases of 15 gallons. Prices at 13 Costco warehouses across the continental US were compared with GasBuddy county averages. Costco's per-gallon advantage in the sampled markets ranged from $0.11 to $0.55, and multiplying those savings by 600 gallons yields annual savings that can offset the $65 membership fee.
Read at Business Insider
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