Is Costco Gas Really Cheaper?

Costco has arrived in New Zealand, promising another way to buy groceries. But what about its essence?

The doors to her first Auckland boutique opened early Wednesday morning.

But he opened his gas station in April, instantly undermining local competitors.

As with the main store, if you want to access fuel from Costco, you must have a subscription, which costs $60 per year. So does it pay?

When Costco first started selling gasoline, it offered 91 octane gasoline for $2.50 per liter, 95 for $2.60 per liter, and diesel for $2.10 per liter.

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Those prices were cheaper than nearby Pak ‘n Save fuel on Fred Taylor Dr, which was $2.68 for 91 and $2.51 for diesel, according to fuel price comparison app Gaspy.

Costco's gas station opened in April with decent savings at the pump.

Daniel Smith / Stuff

Costco’s gas station opened in April with decent savings at the pump.

As of today (September 28, 2022), Costco fuel is $2.39 per liter for 91, $2.58/L for 95, and $2.39/L for diesel, using figures reported by Gaspy .

The same nearby Pak ‘n Save has fares of $2.55 for 91, $2.74 for 95, and $2.52 for diesel, while Station Z also on Fred Taylor Dr currently has fares of 2 $.71/L (91 octane), $2.87/L (95 octane) and $2.61/L (diesel).

Costco offers 91 octane, 95 octane and diesel at its station.  There is no option 98 yet.

George Heard / Stuff

Costco offers 91 octane, 95 octane and diesel at its station. There is no option 98 yet.

Using Costco and Pak ‘n Save as a point of comparison, the price differences are 16c for 91 and 95, and 13c for diesel.

Putting 50 liters of 91 in your car would cost about $120 at Costco, compared to about $128 at Pak ‘n Save, so, yes, Costco fuel is cheaper in the long run.

Considering the $60 membership cost, at that difference, you’ll need to refuel seven times before you start saving.

As for Z, even with its 6c/litre fuel rebate scheme, it’s the most expensive for 50 liters at $91-$136.

The difference is smaller for those who need diesel, but you’ll still end up saving money, especially if you also shop at the Costco warehouse to get the most out of the membership.

There are fuel savings to be had at Costco, even with the price of membership.

RICKY WILSON/STUFF

There are fuel savings to be had at Costco, even with the price of membership.

Of course, other gas stations periodically offer fuel discount days, so the potential savings may change.

But you don’t have to buy Costco fuel, so you can potentially get the best of both by filling up at Costco most of the time and taking advantage of discount days elsewhere. Plus, there’s the cost of fuel to get to Costco…

Costco’s station is also not open 24/7 like other competitors. It operates from 6 a.m. to 9:30 p.m. Monday to Friday, 6 a.m. to 7:30 p.m. Saturday and 7 a.m. to 7 p.m. Sunday. You pay at the pump, but there are also attendants on site.

As for the fuel itself, don’t worry about the quality. It’s branded Kirkland Signature, Costco’s internal brand, and although the website doesn’t state it, it appears the fuel is currently sourced from Mobil. Costco then adds its own additives, like deposit control additives, on-site to save money. Neither blends 91 nor 95 appear to contain ethanol.

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