As fuel prices climb across the United States, more drivers are turning to Costco for lower-cost gasoline. The warehouse retailer has reported record demand at its gas stations, with some locations requiring multiple fuel deliveries each day to keep up with customer traffic. Rising fuel costs have encouraged many consumers to seek out cheaper alternatives, even if it means waiting in longer lines.

According to CNN, Costco has become a popular destination because its gasoline is often priced around 20 to 30 cents per gallon below nearby competitors. Unlike traditional gas stations that rely heavily on fuel profits, Costco operates on a membership-based business model, allowing it to sell gasoline with much smaller profit margins while generating revenue through membership fees and in-store purchases.

The strategy has helped Costco attract both new and existing members. Company executives noted that a growing number of customers have used Costco gas stations for the first time in recent months. Many of those customers later enter the warehouse to shop, boosting store traffic and strengthening customer loyalty. Roughly half of Costco gas customers also make purchases inside the store.

While gasoline is one of Costco's lowest-margin products, the company views fuel as an important way to build long-term relationships with members. Analysts say the approach has helped Costco stand out during a period of elevated fuel prices, although future demand may depend on whether gasoline prices remain high.