Costco Is Opening Its First Stand-Alone Gas Station This Summer

Alex AndonovskaTue, March 31, 2026 at 3:29 PM UTC

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Cheapism

Costco members will have one more reason to be pumped about their membership, aside from bulk deals and rotisserie chicken. At a time when gas prices are skyrocketing and many Americans are rethinking their commute, the wholesale giant has announced plans to open its first stand-alone gas station available to Costco members who pay a $65 (Gold Star Membership) or $130 (Executive Membership) annual fee.

Costco launched its first gas station as part of the store in 1995, more than a decade after entering the wholesale market. Since then, the company has consistently included a gas station at its locations and built itself into a serious competitor in the fuel business.

Now, Costco is working on creating a stand-alone gas footprint across the country.

Where Is Costco Opening a Stand-Alone Gas-Station?

Costco’s first stand-alone gas station has reportedly been under construction since fall 2025 on the site of a shuttered Bed Bath & Beyond in Mission Viejo, California, a coastal city about 60 miles southeast of downtown Los Angeles.

The 17,000-square-foot station, featuring 40 pumps, is expected to open in June as the largest Costco-operated gas station in the country.

The station is expected to operate daily from 5 a.m. to 10 p.m. and will be located near a Dairy Queen, Krispy Kreme, Jack in the Box, and Chill & Grill.

Is It Strategically Located in California?

Costco has never confirmed that its decision to open the first stand-alone gas station in California is part of a broader strategy, but the location choice makes sense. California currently has some of the highest gas prices in the country, with the average price for a gallon of regular gas going for $5.887 as of March 31, compared to the national average of around $4.

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According to U.S. News & World Report, Costco’s gas prices are typically $0.10 to $0.30 below the U.S. average and are a significant draw for members. For example, gas prices in the Mission Viejo area currently go up to $6.35 per gallon, while the two closest Costco gas stations — at the Laguna Niguel and Laguna Marketplace warehouses, about 3 miles from the planned site — are selling gas for $5.69 per gallon.

‘Gas, Hot Dog, and Rotisserie Chicken in One Shop’

Members are both excited and confused by Costco’s latest move, with many questioning the site of the upcoming station (some people have described the site as an abandoned center once populated by retailers like Buy Buy Baby). Most are worried the station will cause traffic chaos because of its location.

“It’s a terrible, terrible place for it. One road in and out and a short turning light will cause backups and congestion,” wrote one Redditor.

“I live on Crown Valley by the Kaleidoscope. That is such a weird location. Aren’t gas stations supposed to be easy in and out on busy streets? This place is pretty isolated from the rest of the traffic,” agreed another.

Others are more interested in whether this new project will include two things everyone loves about Costco — the $1.50 hot dogs and rotisserie chicken. “Gas, hot dog and rotisserie chicken in one shop,” one commentator said.

There are also those that are baffled by the financial reasoning of this new project, claiming gas is not a moneymaker for the owners.

“It doesn’t make sense to me,” one Redditor wrote. “Gas stations make their owners very little money from gas sales. Most of their money comes from the convenience store. For Costco, the gas station is there to get you into the warehouse where they make most of their money.”

Are There More Stand-Alone Costco Gas Stations Coming?

Costco has another solo gas station location in the pipeline, planned in Honolulu, Hawaii, where gas prices range from $5.14 to $5.59 per gallon. The Honolulu location is expected to have an opening date sometime next year.

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Source: “AOL Money”