4 Ways Costco Gas Might Actually Cost You More

Warehouse club operator Costco is best known for letting you load up on groceries and other items at discounted prices, but the chain has also earned a reputation for selling cheap gas. A recent Motley Fool analysis of gas prices in seven U.S. cities found that Costco’s prices were $0.28 per gallon cheaper on average than typical gas prices.

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Motley Fool also analyzed research from the U.S. Bureau of Transportation Studies and concluded that the average vehicle requires about 417 gallons of gasoline a year. At a savings of 28 cents a gallon, that comes out to annual savings of just less than $117. Long story short: You can usually save a lot of money by purchasing your gas at Costco.

But not always. There are some cases when Costco gas might actually cost you more money than you would pay elsewhere. Here’s a look at four of them.

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Other Stations Sell It Cheaper

This is the most obvious reason buying gas at Costco can cost you more money: other stations sell it for lower prices. It’s also the most common reason. Although Costco might beat average gas prices in your area, chances are it doesn’t have the lowest price.

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You Have To Drive a Long Way to Get There

If you drive several miles or more to get to the nearest Costco, then it doesn’t make sense to go there just for the gas. You end up burning a lot of gas on the drive alone, which costs money. The best move is to buy gas at a nearby station and only get it at Costco when you are heading there anyway.

You Belong to a Gas Rewards Program

Many gas companies and retailers offer rewards programs to customers to help them save money. If you belong to one of those programs, then buying gas at Costco might not be the best move.

For example, the Shell Fuel Rewards program lets you save 10 cents a gallon every time you fill up. With Exxon Mobil Rewards , you can earn at least 3 cents a gallon in points on gasoline and 2 cents in points on every dollar you spend on snacks, drinks, car washes and other items.

You Wind Up Making Impulse Purchases

If you visit a Costco to fill your tank and then pop into the store afterward, you might end up spending $50 or more on things you don’t even need. If you only need to buy gas and nothing else, resist the temptation to turn it into a trip that might involve impulse purchases.

This article originally appeared on GOBankingRates.com : 4 Ways Costco Gas Might Actually Cost You More