Overview
- Costco told investors in its May 31–June 1 quarterly commentary that gasoline demand has reached the highest level in the company’s 50‑year history and that some of its roughly 747 pump sites have needed tanker trucks multiple times per day to keep up.
- The company sells fuel at very low margins of only a few cents per gallon, a deliberate pricing strategy that undercuts many local stations and is driving unusual pump traffic.
- Drivers are increasingly making short 'top up' purchases and waiting in long lines at pumps to lock in lower prices, which has pushed weekly fuel volumes to record levels late in the fiscal quarter.
- That surge is creating logistical strain for suppliers and for Costco, which is arranging more frequent deliveries and monitoring whether the extra fuel visits convert into steady warehouse shoppers.
- Costco reported strong fiscal third‑quarter results with digital sales acceleration and record fuel weeks, but it also flagged slight gross‑margin pressure from fresh‑food and transportation costs that could be worsened if high pump demand persists.