In 2025, Costco remains one of the most powerful forces in U.S. retail, not just in warehouse shopping but also in fuel. Costco’s gas stations, a perk available exclusively to members, have become a quiet yet essential pillar of its customer retention strategy. With consistently lower fuel prices, efficient station layouts, and a reputation for quality, Costco has reshaped how Americans think about fueling.

This article provides an updated look at Costco’s gas station footprint, member experience, and growth strategy in 2025. We’ll also explore how its model compares with Sam’s Club, BJ’s, and traditional chains like Shell and Chevron. Finally, we’ll highlight what businesses, investors, and real estate developers can learn from Costco’s fueling success.

Costco’s Gas Station Footprint in 2025

As of Q2 2025, Costco operates:

• ~870 warehouses worldwide
• ~600 Costco fuel stations globally
• ~580 fuel stations in the U.S. alone

That means roughly 67% of U.S. Costco warehouses now have an attached fueling station, up from just over 50% in 2020.

Geographic Distribution

Costco’s fuel stations are strategically positioned:

• California: 125+ fuel stations (largest state market)
• Texas: 55+ locations
• Florida: 40+ locations
• Northeast (NY, NJ, MA, PA): 70+ combined
• Pacific Northwest (WA, OR): 45+ combined

Costco tends to prioritize high-traffic suburban corridors, near highways, and in regions where gas prices are volatile — making their discount advantage more meaningful.

HTML Table: Costco vs Competitors in 2025

Here’s how Costco compares with other membership-based fuel competitors in 2025:

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Why Costco’s Fuel Strategy Works

1. Membership Loyalty Driver

• 2025 data shows Costco now has ~135 million members globally, up from 124 million in 2023.
• Surveys consistently find that cheap fuel is one of the top three reasons members renew.

2. Thin Margins, Big Volume

• Costco makes almost zero profit margin on fuel itself.
• Instead, stations drive traffic to warehouses — boosting grocery, electronics, and household sales.

3. Operational Efficiency

• Costco stations typically have extra-long hoses, enabling cars to fill up from either side.
• High-capacity pumps reduce wait times.
• Many stations now integrate digital signage and app-based wait-time updates (launched in 2024).

Member Experience at Costco Gas Stations

Costco fuel isn’t just about price — it’s about perceived trust and quality:

• Top-tier Gasoline Certification: Costco fuel meets the highest detergent standards.
• Payment Systems: Costco phased out cash payments in 2023; transactions are streamlined through credit, debit, and the Costco app.
• Wait Times: Peak-hour waits average 6–8 minutes in 2025, down from 10–12 minutes in 2022 due to better pump layouts.
• Customer Ratings: Costco fuel stations maintain an average Google rating of 4.5/5 stars, far above traditional chains.

U.S. Costco Fuel Expansion (2020–2025)

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How Costco Compares to Traditional Fuel Chains

Unlike Shell, BP, or Chevron, Costco doesn’t compete on brand loyalty in gasoline itself. Instead, its edge is:

• Price Leadership: Costco fuel can be $0.20–$0.35 cheaper per gallon than the local average.
• Predictability: Unlike independent operators, Costco members trust that fuel will always be among the lowest in their city.
• Bundled Value: Unlike most gas stations, Costco fuel is part of a larger ecosystem of savings — groceries, electronics, travel, and more.

Growth Outlook: Costco Fuel in 2025 and Beyond

• Costco is expected to add 20–25 new fueling stations annually through 2027.
• Growth focus: Southeast U.S., Texas, and suburban Midwest.
• Analysts estimate Costco’s fuel volume market share in the U.S. is now ~4%, a remarkable feat given its exclusive access model.

Business & Investment Takeaways

For businesses and investors, Costco’s gas stations highlight three major lessons:

1. Fuel as a Loss Leader: Discounts on high-frequency items can power long-term retention.
2. Site Selection is Everything: Costco chooses sites with high commuter density and strong disposable income.
3. Ecosystem Value Wins: Gas is never “just gas” — it’s an entry point into a much larger business model.

Conclusion

Costco gas stations in 2025 represent a unique intersection of fuel economics, member loyalty, and strategic growth. With over 580 U.S. locations, industry-leading discounts, and operational excellence, Costco has cemented its position as more than just a warehouse club — it’s a trusted energy brand.

For everyday drivers, Costco means reliable savings and quality fuel. For investors and competitors, it’s a case study in how membership ecosystems transform commoditized markets into loyalty machines.