Costco gas price variance reason

[oilboy123]

I just realized that Costco in Lake Stevens, WA vs Marysville, WA was 44 cents difference. about 10 miles apart. I think it is because of higher incomes near Lake Stevens. They have a lot of Boeing people/higher income. Also the Lake Stevens location is only about a year or so old.

What accounts for the difference?

Edit: Lake Stevens Costco $4.13 gall
Marysville $3.69 gall

 

[loneryder]

I just realized that Costco in Lake Stevens, WA vs Marysville, WA was 44 cents difference. about 10 miles apart. I think it is because of higher incomes near Lake Stevens. They have a lot of Boeing people/higher income. Also the Lake Stevens location is only about a year or so old.

What accounts for the difference?

Different counties or jurisdictions? Different local taxes? Are the other stations around Lake Steven’s high also?

 

[Pablo]

I just realized that Costco in Lake Stevens, WA vs Marysville, WA was 44 cents difference. about 10 miles apart. I think it is because of higher incomes near Lake Stevens. They have a lot of Boeing people/higher income. Also the Lake Stevens location is only about a year or so old.

What accounts for the difference?

Edit: Lake Stevens Costco $4.13 gall
Marysville $3.69 gall

HAH! We saw this too!! Why is Marysville so cheap?? Big crowd too.
Bellingham $4.29 (to screw us AND the Canadians) - maybe not income level
Marysville $3.69

 

[Pelican]

Costco here in Ontario & probably Canada adopted a few years ago "Dynamic Pricing" Thanks
to technology they know when the majority of customers fill-up and that's when the price is at its highest to be lowered at other times.

 

[ATex7239]

Taxes can vary. Gas in my town which has high taxes (and better schools) is usually ~30 cents more regularly than town over in the same county. Last night I gassed up the van at the Shell down the road and the 87 was $2.79. But 10 miles away in the town over the Shell 87 is $2.35.

I don’t make the drive most of the time cause all our vehicle don’t take much fuel.

 

[64bawagon]

I just paid $2.64 gal yesterday at our Costco

 

[Mr.GTRSpecV]

Costco sells its food at a break even or at a loss I believe. Gas they can price competitively since they have great contractual negotiations (I think). However, my theory is they also sell gas at break even or a loss, reason being you need a membership to pump gas and must use debt or a Costco approved credit card. The membership fees coupled with a lack of transactional fees allows a break even or loss scenario for their gas.

Their goal is to get you to have a membership get you INSIDE the store whether you want to or not.

Imagine needing a membership to pump at any gas station? Well, pretty sure it is in the cards for the future.

 

[Egg_Head]

C-stores as well as Costco, Sam's or anyone who sells gas has a slew of data jockeys or now just AI using algorithms to price gas to the market for that day. My Costco is in NC but near the SC border and takes into account lower SC gas prices, so I am the beneficiary.

 

[2005jettatdi]

Different counties or jurisdictions? Different local taxes? Are the other stations around Lake Steven’s high also?T

Tax on gasoline is the same everywhere in Washington. It is not subject to sales tax, so local sales tax rates do not matter.

 

[CarLuver]

at the issaquah costco its 449 . at the fed way costco its 399. they price it according to the area and demographic.

 

[oilboy123]

My naive mind was thinking that Costco would not be manipulating the price from one station to the next. But alas that is not the case......

 

[JeffKeryk]

Lotsa Costcos arround here. Gas prices vary by as much as 20 cents, usually about 10 cents.
There are some independent stations that beat Costco prices, sometimes at least.

 

[B6_Dolphin]

In this case, Costco is competing with the Tulalip Indian Reservation:

 

[oilboy123]

Price diff between the two Costcos is now 50 cents. I'm going study my fuel map more. Seems to be more competitive rates at some other stations than in the past.

I do prefer top tier. Thanks for the heads up B6_Dolphin on the Tulalip station. They are Chevron, and do keep the Costco Marysville gas honest on the price. The Lake Stevens Costco is gouging........... Not really any stations in the area to compete with. Which I now realize is the reason for the big disparity in price between the two Costcos.

Edit:

I just read on a review for the Tulalip station that they are not Chevron? Gas buddy does not show a Chevron icon. The two Costcos I mentioned are in the same county, but different very small cities, if you can call them that.

 

[iCurious]

$2.77 for 87 at Costco here.

 

[Patman]

My naive mind was thinking that Costco would not be manipulating the price from one station to the next. But alas that is not the case......

You use the word manipulation but in reality the prices at most gas stations are mostly about what the competition in the area is doing. The Costco near my girlfriends house is typically 3-4 cents per liter less than the Costco near my house (50 miles away) but there is more competition around the area near my girlfriends house so Costco needs to make themselves more competitive in her area. Up here in Ontario if you look at the prices of any particular Costco, it’s almost always the best price in that area.

 

[brages]

Costco sells its food at a break even or at a loss I believe. Gas they can price competitively since they have great contractual negotiations (I think). However, my theory is they also sell gas at break even or a loss, reason being you need a membership to pump gas and must use debt or a Costco approved credit card. The membership fees coupled with a lack of transactional fees allows a break even or loss scenario for their gas.

Their goal is to get you to have a membership get you INSIDE the store whether you want to or not.

Imagine needing a membership to pump at any gas station? Well, pretty sure it is in the cards for the future.

They are also giving 5% cash back if you are using a Costco credit card!

 

[kballowe]

Our local Phillips 66 is $2.45

 

[Cujet]

I see the same differences in Costco gas prices locally. Stuart, FL to the North (Martin county) is higher than the Costo's in Palm Beach county. Since they are equidistant to my house, I often choose cheaper.

BTW, Costco 93 is 60c cheaper than local stations in either location. However, Costco 93 does not perform as well, less power and lower MPG, as Shell 93 in either of my Jaguars.

 

[Pablo]

Price diff between the two Costcos is now 50 cents. I'm going study my fuel map more. Seems to be more competitive rates at some other stations than in the past.

I do prefer top tier. Thanks for the heads up B6_Dolphin on the Tulalip station. They are Chevron, and do keep the Costco Marysville gas honest on the price. The Lake Stevens Costco is gouging........... Not really any stations in the area to compete with. Which I now realize is the reason for the big disparity in price between the two Costcos.

Edit:

I just read on a review for the Tulalip station that they are not Chevron? Gas buddy does not show a Chevron icon. The two Costcos I mentioned are in the same county, but different very small cities, if you can call them that.

We often fill up at the Tulalip station because less lines and a cool store. I am unsure which refinery supplies their fuel.