There are lots of good reasons to buy gas at Costco. For starters, the lower cost helps you get extra value from your Costco membership — especially if you have a Costco rewards credit card.
But there’s another excellent reason you may not be aware of: Costco sells what’s known as Top Tier fuel at its pumps. Top Tier fuel is higher-quality gas that’s designed by car manufacturers to actively clean your engine while you drive. And that can translate to significant savings on maintenance and running costs.
What makes Costco gas such good quality
If you’ve ever noticed a sticker marked “TOP TIER” with a green logo when you’re at the pump, that’s a sign you’re buying enhanced gas. You’ll find it at Costco, but the warehouse giant isn’t the only place that sells it — many top gas stations do.
When you buy Top Tier fuel, you’re buying enhanced gas developed to keep your engine running smoothly. The fuel goes beyond government standards with extra detergent added to the fuel. As engines become more sophisticated, these types of fuel enhancements become more important.
If you’re wondering whether it’s all just marketing hype, the science backs up the manufacturers’ claims. AAA tested Top Tier fuel against non–Top Tier fuel over thousands of miles of simulated driving. It found:
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Cars that used Top Tier gas had 19 times less engine deposits. Those deposits can clog up your engine, increasing emissions and potentially impacting performance.
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Over time, driving without Top Tier gas can reduce fuel economy by 2% to 4%.
It doesn’t matter whether you’re buying regular, mid-grade, or premium fuel. If you buy from a station like Costco that carries the Top Tier fuel brand, you’ll get the benefits no matter what kind of gas you buy.
Costco gas combines quality and value
AAA estimates that, on average, Top Tier fuel costs about $0.03 more per gallon. That’s not a lot when you consider the potential savings in maintenance costs and fuel efficiency. But the best thing about buying fuel from Costco is that you get quality gas that often costs less to boot.
It’s hard to pinpoint exactly how much Costco members can save at the pump. Gas prices change from day to day and location to location. However, analysis from The Krazy Coupon Lady says you can save an average of around $0.11 per gallon by buying Costco gas. Low prices and quality? It’s a double win for members.
If you want to check gas prices in your area, it’s worth downloading the GasBuddy app or searching on Google Maps. When you’re comparing prices, make sure to look for stations offering Top Tier gas. Costco sells it at low prices, but it’s worth buying even if it costs a few cents more.
How your Costco membership can save you money on gas
A $65 Costco membership gives you access to the warehouse giant’s gas stations, which will often save you money at the pump. Depending on where you live and how much you drive, that can add up. The American Petroleum Institute estimates each vehicle uses almost 490 gallons of gas a year. If you’re saving $0.11 a gallon, that’s over $50.
But that’s not the only way to save. While gas doesn’t qualify for the Costco Executive membership 2% cash back, you can often get credit card rewards.
Indeed, some of the best credit cards for Costco will pay as much as 4% back on gas purchases. Given that the average American spends over $2,000 on gas every year, that could mean at least $80 in rewards.
Key takeaway
Costco gas combines great value with great quality. You can get enhanced gas that will help clean your engine while you drive — and you won’t have to break the bank to do it.
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One Big Reason to Buy Gas at Costco (and It’s Not the Cheap Price) was originally published by The Motley Fool
