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Costco will open the first independent gas station in the company’s history with 40 pumps and no store around it on a 1,500 m² lot where a Bed Bath and Beyond used to operate in California, as fuel prices in the U.S. approach $6 per gallon.

Published on 09/04/2026 at 22:34
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The chain that sells everything from diapers in giant boxes to televisions at wholesale prices has decided that it will now sell only cheap gasoline at a station without shelves, without a convenience store, and without any products for sale, betting that discounted fuel alone is strong enough to attract new paying members to its ecosystem for $65 a year.

Costco has been selling gasoline since 1995. It started by placing pumps in the parking lots of its giant warehouses and, in three decades, has reached 747 stations spread across 914 stores worldwide. Anyone who has visited a Costco in the United States knows: the line to refuel is long, slow, and almost ritualistic. People wait 20 minutes to save a few cents per gallon.

Now, the company has decided to take the next step. The first independent gas station of Costco, with no store next to it, will open in June 2026 in Mission Viejo, California. There will be 40 pumps on a 1,500 m² lot where a failed Bed, Bath & Beyond used to operate.

Why is Costco opening stations without a store?

Costco’s business model is simple and has been working for decades. The company takes high-demand products, eliminates intermediaries and marketing, and sells them at a price that makes the consumer feel like they are beating the system. Then, it makes money by charging an annual membership fee.

With gasoline, the logic is the same. Costco charges between 20 and 40 cents less per gallon than the competition. In California, where a gallon already costs $5.93, this difference means real savings.

The company’s CFO, Gary Millerchip, explained during the second-quarter earnings release of 2026: “When prices are higher, members tend to make the extra effort to go to the station because of the added value they see there.” In other words: the more expensive the fuel, the more people are willing to wait in Costco’s line.

The independent station is the bet that cheap fuel alone, without the wholesale store next door, is strong enough to attract and retain paying members.

How will the station without a store work?

There will be nothing but gasoline. No convenience store, no shelves, no frozen pizza, no Gatorade. The Mission Viejo station will be pure volume: 40 pumps, quick entry, quick exit. The idea is to eliminate the bottleneck that turns Costco’s current stations into endless lines.

To refuel, the driver must be a member. Costco offers two plans: Gold Star, at $65 per year, and Executive, at $130 per year. Both provide access to member pricing at the stations.

Is Costco planning more stations like this?

Yes. The second independent station is already under construction in Honolulu, Hawaii, with an opening planned for 2027. It makes sense: the Iwilei unit in Honolulu is the busiest Costco in the world. And a third location is being studied in Livonia, Michigan.

If the model works, the trend is for Costco to open dozens of independent stations in the coming years, turning gasoline into a gateway to its member ecosystem.

What does this have to do with the price of oil?

Everything. Fuel prices in the United States are rising due to the conflict with Iran and tensions in the Strait of Hormuz. California is already paying nearly $6 per gallon. In this scenario, a station that charges 30 cents less becomes a must-visit destination.

Costco is not reacting to the moment. Plans for the Mission Viejo station have been in place for years. But the company knows it is opening the first independent pump at the exact moment when the price of oil makes the discount more valuable than ever.

A wholesale chain that started selling toilet paper in giant packs is now betting that 40 gas pumps on an empty lot, with no products for sale, are enough to convince millions of Americans to pay $65 a year for the right to refuel cheaper. And with the gallon nearing $6, the math adds up.

With information from The Drive and Inc.

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Maria Heloisa Barbosa Borges

Falo sobre construção, mineração, minas brasileiras, petróleo e grandes projetos ferroviários e de engenharia civil. Diariamente escrevo sobre curiosidades do mercado brasileiro.

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