My family went shopping this weekend, and as we left home, I noticed that gas was $4.19 per gallon at the station closest to our house. I noted that I needed gas and said I would get it at Costco since we were headed there anyway. I expect Costco to be 5 to 6 cents cheaper per gallon based on past experience, but when I arrived, I was shocked. Gas at Costco was $4.01 per gallon -- and 18 cents per gallon difference!!!
That's a huge difference - terrific!
I buy gas at BJs by us. The price at most stations in my neighborhood is $4.25/gallon and BJs is $4.12 - so it's definitely worth it to go once a week and wait in line (with the engine off of course) for the cheaper gas.
Posted by: SUSAN | June 30, 2008 at 12:15 PM
My wife has been riding a bicycle to work ever since I met her. I have started a couple of months ago. So I pay $0.00 for fuel to get back and forth to work. We only use the Jeep every 2 weeks to buy groceries. Loving it.
Posted by: Bobby | June 30, 2008 at 12:29 PM
Want to bet that this is the credit card premium?
Posted by: Mike | June 30, 2008 at 12:48 PM
Mike --
I paid with a credit card at Costco.
Posted by: FMF | June 30, 2008 at 12:50 PM
My grocery store has a convenience store next to it. They have a daily discount of 3-9 cents. Plus, if you buy groceries they give discounts up to an additional 15 cents. On Friday evening I did the weekly shopping and the daily discount was up to 15 cents. I filled up at a 30 cent discount, 3.69/gallon.
Posted by: rwh | June 30, 2008 at 01:15 PM
In my part of the country Costco used to sell gas cheaper, but more recently they are the same as the corner station. In fact I can buy at a corner station, pay cash and get it less than Costco.
Posted by: "Mo" Money | June 30, 2008 at 01:33 PM
The only thing to watch is that if you have a rewards credit card, some of these membership clubs don't allow you to use any old credit card, you have to use a proprietary card. So for examply, my Chase Cash Plus Rewards card that pays 5% back on gas, groceries, and drugstore purchases would not work thier. So in FMF's example, if I pay $4.19 at the outside station and get back 5% cash from my credit card, I really paid $3.98, instead of the $4.01 at Costco.
Posted by: Ryan S | June 30, 2008 at 02:16 PM
Ryan --
That's true, but I use Amex Blue at Costco and get 5% back.
Posted by: FMF | June 30, 2008 at 02:22 PM
Here Costco is among the cheapest but there are other stations that are the same as Costco. Costco typically has a 5-15 minute line of people waiting though.
Jim
Posted by: Jim | June 30, 2008 at 02:35 PM
At the local Sam's club, gas is about 2-3 cents cheaper than the nearby gas stations. I would never go there when I get close to 20 cents a gallon off at Shell with their credit card.
Posted by: wolf | June 30, 2008 at 04:45 PM
That used to be the spread around here too (Seattle area), but the last 2-3 weeks it's been Costco 5 cents or so cheaper or even. Maybe some hedging backfired?
Posted by: Almuliman | June 30, 2008 at 06:29 PM
Always makes me wonder, though . . . is the gas at these discount gas stations of the same quality as regular gas stations? Or are they loaded with silly additives, etc.?
Posted by: CJ | June 30, 2008 at 11:33 PM
Being from MA, the average price is $4.06 a gallon. One station i drive by is 4.19 (and I've seen actual people getting gas there) and another one I drive by is 3.93.
I've never seen a Costco station, but I used to use either BJs or Stop & Shop when I lived at college.
Posted by: Josh | July 01, 2008 at 08:12 AM
FMF, that is true only if you first spend $6,500 on the American Express card. Otherwise, you only get back 1% on gas.
Posted by: Ryan S | July 01, 2008 at 08:38 AM
Ryan --
Yep. I'm already at the 5% level for this year.
Posted by: FMF | July 01, 2008 at 08:54 AM