Disclaimer: this story was original published in May 2018. Prices are subject to change.
Gas prices have been on a relentless rise in Canada this year, and it looks like they won't be slowing down any time soon. According to Gas Buddy, the national average gas price is currently around $1.34/L, and it's likely that some provinces will hit $1.40/L and even $1.50/L in the next few months.
Some Canadians have responded to the sky high prices by choosing to fill up at one place, and one place only: Costco. The wholesale giant, which has its own gas stations across the country, purposely sells its gas for much cheaper than its competitors. Katherine White, a marketing professor at UBC, says it does this in order to attract customers to its stores.
"We have taken many operating costs out of the equation, enabling us to reduce the sell price," a Costco rep told CTV. "Each one of our business units needs to stand on its own and generate substantial profit margins."
Last week, a Costco in Vancouver was charging gas for 23 cents cheaper than most other stations in the area. According to CTV, the savings come up to almost $15 on a 65-litre tank.
Although only Costco members can fill up at the stores, the company says it is still selling 10 times more fuel than its competitors. Non-members are also benefitting from Costco's low price strategy as other gas stations are starting to reduce their own prices to compete.
Are the significantly lower gas prices enough to get you to join the Costco revolution?