MW Costco gas demand hits records, as shoppers try stay ahead of future price spikes

By Bill Peters

Members were topping off vehicles more frequently 'because of the concern about what might the gas price be tomorrow,' CFO says

Drivers wait in their vehicles to pump gasoline at a Costco gas station in Hawthorne, Calif., on March 18.

As the Iran war drives up gas prices, Costco Wholesale's gas stations so far this year have been busier than ever, as drivers fill up more often amid worries about any further jump in fuel costs.

Executives at the membership warehouse retailer said on its earnings call Thursday that it sold a record amount of gasoline over its third quarter, which ended in May, as shoppers flock to its membership clubs for discounts and perks.

"The result was record-breaking volumes," Costco $(COST)$ CEO Ron Vachris said of that demand in the wake of the conflict, which started at the end of February.

"All three four-week fiscal periods of the quarter set successive all-time company-volume sales records, with the final five weeks of the quarter becoming our top five volume weeks ever," he added.

He said many members used Costco's gas stations for the first time in the third quarter. Those visits, he added, would likely translate to greater demand at its stores overall.

Chief Financial Officer Gary Millerchip said that members were topping off their vehicles more frequently, rather than letting their tanks run to empty, "because of the concern about what might the gas price be tomorrow."

He said that Costco's members steered more of their spending toward gas overall during the period. However, he said that he hadn't seen much of a change in members' behavior in stores overall.

Still, shares were muted in after-hours trading, as the retailer reported mixed results.

As the Iran war drives gas prices higher, some analysts have said more consumers could seek discounts at club chains like Costco, the Walmart-owned $(WMT)$ Sam's Club and BJ's Wholesale Club $(BJ)$, all of which run gas stations. Costco and Walmart have benefited more broadly from the cost-of-living squeeze over the past several years, as consumers of all income levels seek greater bargains.

Walmart last week said people were putting fewer gallons in their gas tanks, with the average fill-up slipping below 10 gallons for the first time since 2022, when Russia's invasion of Ukraine sent energy costs higher. Walmart management said such behavior was an indication of deeper stress among consumers, adding that prices at its stores could rise if fuel prices remain high. National average gas prices stood at around $4.43 per gallon Thursday, according to AAA.

BJ's CEO Bob Eddy also said that his company's customers were putting less in the tank - a byproduct of higher prices and more members topping off their tanks more often. The chain said its members spent $143 million more on gasoline than they did a year ago, amid the spike in oil prices.

Costco's sales were up 11.6% year over year to $70.52 billion during its third quarter, which ended on May 10, according to the company's earnings release on Thursday. The company earned $4.93 a share during the quarter. Factoring out fluctuations in gas prices and foreign exchange, Costco's same-store sales rose 6.6%.

Analysts expected Costco to report earnings of $4.98 for its third quarter on revenue of $69.68 billion, while forecasting a 7.8% same-store sales gain.

Factoring in the impact of gas prices, same-store sales rose 9.8%.

Costco shares inched up slightly in after-hours trading Thursday. The stock has lost 9.1% since it closed at a record high of $1,094.32 on May 19, but it has gained 15.4% in 2026 through Thursday's close.

During Thursday's earnings call, Costco executives highlighted the launch of its Kirkland store-brand energy drink, which initially hit shares of energy-drink maker Celsius $(CELH)$, as well as Kirkland-brand dog food that analysts said could compete more directly with Freshpet (FRPT). GLP-1 demand helped its pharmacy business, and the company said it had cut prices in things like chicken wings, chocolate almonds, golf balls and king-sized sheets.

Management also said it had started submitting claims for tariff refunds, and said it expected to start receiving them over the next two to three months. Vachris said Costco planned to use those refunds to benefit members in some form.

"The portion of tariffs that were passed on to them, how much we return and when, depends on a variety of factors, including how much refund money we receive and when it arrives, as well as developments in the lawsuit filed against the company regarding the return process," he said.

Costco faces a potential class-action lawsuit arguing that it owes shoppers refunds after passing on tariff-related price increases, according to Reuters. The company, the news outlet said, has asked a judge to dismiss that suit, and analysts have said shoppers seeking those refunds face an uphill battle.

Oppenheimer analysts, in a note this month, noted that Costco's stock has fallen after four of its past eight quarterly earnings reports. But they said any post-earnings drop represented a chance to buy the dip.

UBS analyst Michael Lasser, in a separate note this month, said that higher gas prices appeared to draw more consumers to Costco in April, when it put up an 11.6% monthly same-store sales gain. He also said those sales gains were driven by a 4.2% increase in consumer foot traffic, following weaker trends in March.

"[Costco] can navigate continued uncertainty like it did in April, and if the environment eases, we think it can take advantage," Lasser said.

-Bill Peters

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May 28, 2026 18:44 ET (22:44 GMT)

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