How Costco sells such cheap gas [View all]
In its 50-year history, Costco has never seen such demand for gas.
Many of its stations have been so overwhelmed that they’ve had to call in tanker trucks multiple times a day to avoid running dry, Costco said this week during its quarterly earnings call. A growing number of customers are buying just enough to top up their tanks, concerned about what tomorrow’s prices may be.
As prices have surged above $4 nationwide – and above $6 along the West Coast – Costco has become America’s destination for cheap gas. Well, relatively. Costco routinely undercuts local gas stations by around 30 cents a gallon.
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Not a ‘loss leader’
Costco actually makes a profit on gas – a few cents per gallon. That’s substantially lower than the 25- to 35-cent markup that most gas stations take.
https://www.msn.com/en-us/money/companies/how-costco-sells-such-cheap-gas/ar-AA24t9pw
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