Costco Gas Price Gouging ?

Status
Not open for further replies.
H

HTSS_TR

Joined
Apr 17, 2006
Messages
19,528
Location
Lake Forest, CA
Costco price of regular in Orange County, California differs as much as $0.42/gal, $3.43 at Cypress location and $3.85 at San Juan Capistrano.

Normally, Costco price is about 10-30 cents less than closest name brands such as Shell, Chevron ... But now a Shell station in San Juan Capistrano is selling regular for 6 cents less than Costco at $3.79.

As far as I know almost all items in a Costco are priced the same as any other Costco in the same state, but gasoline price is different, 1 location can have it lower than others by 10-20 cents or more a gallon.

Is it gouging or different station buying gas from different distributor so that their price may not be the same ?
 
I bet the gas is from a different distributor. Our Costco does not have a gas station, but the price locally has gone up significantly the past week. It has gone up about $1 a gallon in a week. Everyone is convinced it is the oil companies thanking us for not letting them drive semi trucks of crude through the county while the pipeline is down.
 
Price has gone up this past week. Costco will never price gauge which is illegal. Like BD said could have been a different plant that they get it from.
 
There's a whole lot of uncertainty, and when that happens, you can't try and guess the price of gasoline.

I would assume that Costco isn't feeling a whole lot of certainty as to where their next load of gas is going to come from... so they're going to make as much money as they can on what they have right now, in case the next load really ends up costing them.
 
According GasBuddy.com, average regular in Orange County was $3.16a month ago, $3.49 a week ago, was $3.76 yesterday and is $4.02 today.

National average is between $2.76 to $2.79 for the last 30 days.
 
Originally Posted By: mrsilv04
There's a whole lot of uncertainty, and when that happens, you can't try and guess the price of gasoline.

I would assume that Costco isn't feeling a whole lot of certainty as to where their next load of gas is going to come from... so they're going to make as much money as they can on what they have right now, in case the next load really ends up costing them.

The question was why $0.42/gal different between 1 Costco station to another within a small county like Orange County ? Normally, the different in gas price was no more than 10-15 cents a gallon. Why don't they buy gas from the same distributor ?
 
The cost of gas in a geographic region is determined by the local distributor that owns the gas pipeline. There is usually only one pipe line into a local region and therefore only one local wholesale distributor. They set the price based on local supply and demand and based on their volume wholesale cost. And yes it is all the exact same gas sold to every single local "brand" (with exception of additive packages).
 
Originally Posted By: madRiver
Retailers can charge what they please. It is not gouging.


That is my other thought. It isn't like Costco is the only place selling gas. If you don't like their price, go to Royal Dutch Shell, Chevron, or 76.
 
The sell price of Costco gas is set for every station in the country remotely by HQ based on very local competitive situations. I watch it on GasBuddy and if they get high I'll buy elsewhere. Their gas is also high quality Top Tier with 93 premium here so they are my default fill.
 
I spoke with Costco manager once about their gas price. He said that every morning they find the lowest gas price within a certain mile radius of the store (I think it was 5 miles) and then Costco gas price is 5 cents less than that lowest price. Automatically.

In our area this works out well because Costco is always the cheapest price around because there is a station within the radius that is always cheap and Costco is therefore even cheaper.
 
Originally Posted By: HTSS_TR
...Is it gouging for different station buying gas from different distributor so that their price may not be the same ?

No. Substantial price adjustments at all retailers in this area recently.

Some of whom presumably recalibrated prices with the exact same delivery load of fuel in their underground tanks.
smile.gif
 
Originally Posted By: Nate1979
I spoke with Costco manager once about their gas price. He said that every morning they find the lowest gas price within a certain mile radius of the store (I think it was 5 miles) and then Costco gas price is 5 cents less than that lowest price. Automatically.

In our area this works out well because Costco is always the cheapest price around because there is a station within the radius that is always cheap and Costco is therefore even cheaper.


I have a son that works at Sam's Club and he said that is exactly how Sam's Club determines the pump price as well. Because his store is located in downtown Salt Lake, their gas is usually more expensive than what I can buy at Sam's Club out in the burbs.
 
At least you have a choice, that's what competition is all about. Go to where you like, if the closest Costco is more expensive than you're comfortable with go elsewhere. You can't go wrong with Shell, especially if its 6 cents a gallon cheaper.
 
Around here, Costco is consistently 10c or cheaper for premium, and 2+c cheaper for regular.
 
There was a price war going on between Costco, Sam's Club and BJ's around me. Since they're all fairly nearby each other, what one does is quickly copied by the others. Their fuel has consistently been 30-40 cents a gallon cheaper than anywhere else, and it's been that way for a month or so.
 
I just filled up, Shell premium was $4.10, regular $3.80. Unfortunately San Diego has the highest gas prices in the lower 48.
 
Status
Not open for further replies.

Similar threads

E
Detergents, no solvents, every fill up
2 3 4
Replies
61
Views
7K
Hall
Shel_B
Why I like Costco gas
2 3
Replies
49
Views
5K
ssspencerjr
KCJeep
  • Locked
Perplexing pricing, Shell premium 50 cents less than regular???
2
Replies
25
Views
2K
Slow Car Sport Mode
D
Cheap math on supposed longevity benefits of premium vs. regular
2 3 4
Replies
60
Views
8K
nicholas
T
Love's stations selling E-15 - no 87, just 88/89/91.
Replies
10
Views
5K
eljefino
Back
Top