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Many people go to Costco regularly to stock up on food and household essentials, like tissues and cleaning supplies. But there's another essential item you can purchase from Costco -- gasoline. Many Costco stores are equipped with fuel stations so you can leave with not only a trunk full of purchases, but a full tank.
But should you buy gas at Costco? Here are some of the benefits -- and drawbacks -- involved.
Pro No. 1: Big savings
Costco gas is often cheaper than competing stations nearby. This doesn't mean Costco will always have the lowest price. But if you do a little research (which apps like GasBuddy might help with), you're likely to find that your cost per gallon is lower at Costco than most fuel stations in your neighborhood.
Pro No. 2: High-quality fuel
Not only is Costco gas generally inexpensive, but it's also high in quality. Costco's Kirkland Signature Fuel holds the TOP TIER™ designation, meaning it's designed for great performance. You might get better mileage out of Costco gas than fuel that isn't TOP TIER™.
Pro No. 3: Convenience
Sometimes, it's annoying to have to make a separate trip to a gas station when your tank is getting low. If you time your Costco shopping strategically, you can tackle two errands at once. You won't have to make an extra trip to a fuel station if you're already going to Costco to do some grocery shopping.
Con No. 1: Long lines
It's not exactly a secret that Costco gas is inexpensive. Because of this, you may find yourself waiting in a long line every time you need to fill up.
If you have a tight schedule and a smaller tank to fill, it may not be worth it to wait 15 or 20 minutes to get access to a pump. However, if the lines for Costco gas tend to be reasonable in your area, then you might as well snag the cheaper fuel.
Con No. 2: No Executive member cash back
The primary benefit of Costco's Executive membership, which costs twice as much as a basic membership, is getting to earn 2% cash back on Costco purchases. But fuel doesn't count toward that perk, so you won't snag extra cash back on your Executive membership if you buy Costco gas. However, if you pay for your fuel with a gas rewards credit card , you might earn more than 2% cash back on your fill-up.
Keep in mind, though, that Costco fuel stations only accept Visa cards. You can also pay with a debit card or a Costco Shop Card (the store's version of a gift card), but then you won't be looking at any cash back.
For the most part, it pays to get gas at Costco to save money and get great performance out of your tank. Just be prepared to potentially wait in a long line. And don't be shocked if the only cash back you get on your fill-up comes from your credit card.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, JPMorgan Chase, and Visa. The Motley Fool has a disclosure policy .
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