record-breaking gasoline – With gas prices rising and affordability pressures growing, Costco reported record-breaking sales volume in its gasoline business, driven by higher pump traffic and first-time use of its stations. The retailer also posted growth across net sales, memberships,
For the past few months, Costco’s gas pumps have been working harder than usual—so hard that the company said the demand was significant enough to require additional deliveries just to keep fuel stocked.
In its latest quarterly earnings report. the budget-friendly retailer described a “record-breaking” volume of sales in its gasoline business. tied directly to how members and new visitors are responding to soaring gas prices. Costco runs its own pumps attached to its retail locations, and members—who pay $65 annually—use them to fill up.
Costco’s fuel pricing is set up to undercut competitors, and the company framed that as part of a bigger bargain: when customers feel affordability squeeze, the appeal isn’t just what’s inside the warehouse—it’s the cost of getting there.
The timing also matters. Costco CEO Ron Vachris told investors that the ongoing war in Iran has elevated fuel prices, and that those events have affected product supply and gas prices. He said Costco’s focus is to stay stocked and keep offering value.
“As events in the Middle East have had a significant impact on product supply and gas prices, our focus, as always, is to be there for our members by staying in stock and offering the best value,” Vachris said on the company’s call with investors.
He added that the same pressure on consumers’ budgets that helped drive record volumes also pushed many members to use Costco gas stations for the first time.
“The high consumer price sensitivity, which fueled these record volumes, also drove many members to use our gas stations for the very first time in the third quarter.”
Vachris also expects the ripple effect to be in-store. More people stopping at Costco’s pumps. he said. means more opportunity to shop inside—because customers who get gas at Costco tend to spend more during their regular shopping trips. The CEO said some members who previously only shopped in the stores are now going to the pump during Costco visits.
Costco’s approach to gas is designed around volume rather than fat margins. The company says its gas prices trend around 10 to 30 cents cheaper per gallon than the competition. and it keeps that advantage even when fuel is expensive. Vachris pointed to the strategy’s broader logic: even with thin fuel margins. the value encourages members to buy more of the retailer’s warehouse deals—from its famous $5 rotisserie chickens to home cleaning products.
That bargain is showing up not just at the pump, but across Costco’s business. In the same quarter, the retailer reported an 11.6% boost in net sales compared with last year, while its paid membership program grew by 4.1% during the quarter.
Digital activity also accelerated. Costco reported a 21% increase in digital sales, along with 37% more traffic to its website and apps—an unusual standout for a retailer best known for its in-store experience.
Several categories posted double-digit growth year over year, including its pharmacy business, gold and jewelry, home furnishings, tires and housewares.
Costco also emphasized faster checkout and continued improvements to digital membership cards. In March. the company announced a pilot program that would allow employees to pre-scan items in customers’ carts while customers wait in line. routing purchases to special pay stations to reduce wait times. On the earnings call. Vachris said the company is launching the technology in new stores and rolling it into the checkout process in its busiest locations.
“Our buyers continue to demonstrate their ability to adapt and are using their significant experience and expertise to try to reduce the impacts on prices for our members,” Vachris said. “Our goal is to be the first to lower prices and the last to raise them.”
Between the extra gas deliveries and the surge in first-time pump users. Costco’s quarterly results suggest what many households are feeling at the pump: when costs climb. shoppers don’t just look for cheaper deals inside stores—they follow the savings to the fuel pumps first. and then back to the warehouse.
Costco gasoline business gas prices quarterly earnings Ron Vachris memberships net sales digital sales record volume inflation retail checkout
So gas is basically still expensive but Costco found a way to sell more anyway.
I swear the pumps always look busy when I drive by. Maybe people should stop buying gas during “war in Iran” or whatever, like it’s that simple.
Wait so Costco members pay $65 and then they get cheaper gas? That seems like a scam lol but also I’m glad they can keep it stocked with more deliveries. Didn’t think gas demand could be “record-breaking” with prices going up.
The headline says record gasoline demand and I immediately thought they were running out of gas (like always). But apparently it’s just they had to add deliveries. Also “first-time use”??? Like people don’t know they can use Costco pumps unless they’re already there? Idk. Iran war affecting supply makes sense I guess, but my brain keeps going back to whether they’re actually cheaper or just cheaper for a certain crowd.