Costco’s low‑price gasoline draws record traffic as U.S. fuel prices rise

Costco reported unprecedented demand for its gasoline, with many of its 747 stations needing extra tanker deliveries to avoid running dry. The retailer undercuts most local stations by about 30 cents per gallon, attracting new members who are topping up amid national prices above $4 per gallon and West Coast prices over $6.

While gas is a low‑margin item, Costco still makes a few cents profit per gallon, and the fuel segment contributed roughly 10 % of total sales last year. Membership fees continue to account for about two‑thirds of the company’s profit. The surge in fuel traffic boosted foot traffic in warehouses by around 5 %, prompting the company to extend discounts on meat, eggs and its famous rotisserie chickens to further drive member spending.

CEO Roland Vachris noted the high‑fuel‑price environment led more members to use Costco’s pumps, while CFO Gary Millerchip said the company is leveraging the situation to increase overall member value.