The national average for a gallon of regular gasoline reached $4.16 as of April 9, up 8 cents from the previous week and the highest the figure has been since early August 2022, according to data from AAA. A year ago, that same gallon cost drivers $3.24 meaning the jump over 12 months has been both significant and swift.
The ongoing conflict involving Iran has kept crude oil prices elevated, even as a two-week ceasefire announcement briefly pushed the price per barrel below $100 before it climbed again. The back and forth reflects just how sensitive fuel markets remain to geopolitical developments, and analysts caution that sustained relief is unlikely as long as the situation remains unresolved.
For everyday drivers, the financial strain is already showing up in their habits. A LendingTree survey of more than 2,000 consumers found that 31% have already changed their spending or saving behaviors because of higher gas prices, with another 35% saying they will do so if prices stay elevated. Just 21% feel confident the spike will be short-lived.
What Costco actually charges at the pump
One option that has drawn renewed attention amid rising prices is fueling up at Costco. The warehouse club, which requires a paid membership to access both its stores and its gas stations, is widely recognized for offering some of the lowest pump prices available. A basic Gold Star membership runs $65 per year.
Patrick De Haan, a petroleum analyst at GasBuddy, has described Costco as having among the lowest gas prices of any retailer. The figure most commonly cited by analysts and consumer publications is a savings of around 20 cents per gallon compared to the average station nearby a number backed up by data from Jalopnik and consistent findings on GasBuddy across multiple markets.
Using straightforward math, a driver saving 20 cents per gallon would need to purchase 325 gallons at Costco to offset the $65 annual membership cost. Given that the average American car gets about 24 miles per gallon, according to the U.S. Department of Energy, that translates to roughly 7,800 miles of driving per year a threshold the vast majority of American drivers clear comfortably.
The U.S. Department of Transportation reports that the average American man drives 16,650 miles annually, while women average 10,142. The only groups that fall below the 7,800-mile threshold are women over 65 and women between 16 and 19. For nearly everyone else, the math works in their favor assuming a Costco station is reasonably accessible.
The credit card that changes the calculation entirely
For drivers willing to take one additional step, the savings picture improves considerably. The Costco Anywhere Visa, issued by Citi, offers 5% cash back on gas purchased at Costco and 4% on gas bought at non-Costco eligible stations, up to a combined $7,000 in annual spending before the rate drops to 1%.
A driver who runs $7,000 worth of fuel through the card at Costco locations would receive $350 back over the course of a year. At that point, the membership cost is not just covered it is more than covered, and the cardholder is effectively being paid to fuel up.
That said, the practical limitation of Costco’s gas network is worth factoring in. The company operates roughly 580 stations across the United States, meaning the option simply is not available in every market or neighborhood. For drivers in areas without a nearby location, the savings potential narrows considerably.
Why Costco sees more gas customers when prices spike
Costco’s own executives have acknowledged that rising pump prices tend to drive more members toward their stations. Speaking during the company’s second quarter earnings call on March 5, CFO Gary Millerchip noted that higher prices motivate members to make the extra effort to reach a Costco station, because the value of the trip becomes more apparent.
Retail analysts have echoed that observation. GlobalData Managing Director Neil Saunders has noted that Costco gas stations are consistently among the most crowded areas of any location, with lines that frequently extend into the parking lot a visible sign of just how many members treat the pump as a primary reason for their visit.
Whether a Costco membership makes sense purely for gas depends on individual driving habits and proximity to a location. For most American drivers, the numbers suggest it does and the right credit card makes the case even stronger.