Work is underway on a gas station at the Costco store near Christiana Mall that could put downward pressure on gas prices
Gas stations are a common feature at members-only Costco locations around the country and help drive down gas prices. Costco views the pricing as a drawing card for adding members, whose annual fees comprise a large chunk of the company’s profits
The strategy upsets some on Wall Street who want the company to boost earnings by raising the price of gas and charging more than $2 for a slice of pizza or $5 for a whole roasted chicken.
In some areas, such as California, the price at the pump at Costco can be 30 cents below competitors with long lines a common feature at its pumps.
In Pennsylvania, a state with high gas taxes, a Costco store in Glen Mills was selling regular at $2.56 a gallon as of Thursday. By contrast, gas was selling at neighboring Wawa locations at more than $2.75 a gallon, according to the Gas Buddy website.
Drivers of performance cars and others who monitor such things like the fact that Costco uses “top tier” gas.with additives despite the discount price.
Archrival BJ’s employs a similar strategy that puts downward pressure on prices in areas around its stores in New Castle, Elsmere and Millsboro. As of Thursday, the posted price at BJ’s ranged $2.37 to $2.39 a gallon, with some neighboring stations attempting to match that number