Walmart+ Gasoline Discount Enables Prices Below Costco’s Fuel Costs

Costco has long been a go‑to destination for bargain‑hunting drivers, offering fuel prices that are typically about 30 cents per gallon lower than the average competitor. According to the latest Consumer Price Index, gasoline prices have risen 40.5 % year‑over‑year, making those savings especially significant for consumers.

Walmart is now positioning itself to challenge Costco’s dominance at the pump. The retailer’s Walmart+ membership program, which costs $12.95 a month or $98 annually, provides members with discounts of up to 10 cents per gallon at thousands of stations across the United States, alongside other benefits such as free grocery delivery on orders of $35 or more.

Walmart+ changes the math at the pump

Walmart shoppers are often price‑sensitive and may avoid paid memberships, preferring the traditional supercenter experience. However, for frequent shoppers or those who value grocery delivery, Walmart+ can be a worthwhile investment.

The membership’s fuel discount, combined with Walmart’s decision not to require a membership for gas purchases, creates a compelling alternative to Costco. “In this period of elevated gas prices, members are tapping into their fuel savings benefits even more today,” CFO John Rainey said during Walmart’s first‑quarter 2027 earnings call, noting that membership fee revenue growth has accelerated.

Unlike Costco, which limits fuel benefits to its members, Walmart’s non‑membership‑required model allows shoppers stopping by for groceries or household items to fill up their tanks on the spot, increasing the likelihood of fuel sales even for non‑members.

Costco gas offers a huge benefit, even if it isn’t the cheapest

Price is only one factor for many drivers. Costco’s fuel meets the Top Tier certification, meaning it contains five times the EPA‑required detergent level, which helps maintain cleaner engines and reduce deposits.

In contrast, Walmart and Sam’s Club fuel meet only the minimum EPA standards, making them legally compliant but not delivering the same performance advantages.

Costco’s focus on quality aligns with its broader Kirkland brand strategy, and the warehouse chain reported record gasoline volume in the first quarter of fiscal 2027. “We believe this will drive even greater loyalty with these members in the future as members who use our gas stations typically spend more with us in the warehouse,” CEO Ron Vachris explained.

Ultimately, shoppers can obtain cheaper gasoline at Walmart than at Costco, but doing so typically requires a Walmart+ subscription and an acceptance of fuel that is serviceable rather than premium.

Maurie Backman owns shares of Costco.

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