Costco Wholesale (COST, Financials), the membership-based warehouse retailer, reported record gasoline demand during the quarter ended May 10 as consumers sought lower prices at the pump.
Chief Executive Ron Vachris said several warehouses required multiple fuel deliveries each day, while the final five weeks of the quarter were Costco's busiest ever for gasoline volume.
Costco fuel prices averaged about 9 cents per gallon below the five largest local competitors and 24 cents below state averages between April 2025 and March 2026, according to a Gordon Haskett study using GasBuddy data.
The lower prices serve a broader purpose than fuel sales. Costco uses gasoline to encourage members to visit its locations more often, shop inside warehouses and renew their subscriptions.
Chief Financial Officer Gary Millerchip said members who purchase gasoline generally visit more frequently, spend more and renew at higher rates. Slightly fewer than half also enter the warehouse during a fuel stop.
Membership fees generated more than $5 billion in revenue during 2025, equal to roughly two-thirds of Costco's net income.
Investors will now watch whether rising fuel demand continues to support store traffic, membership retention and overall spending.