Do We Need to Worry About Costco? No.

Comment on the February 15 prediction: “Safe for the next several days” was correct on the 15th, but we did get a modest reset on the 22nd, to $3.29. So, I am going to say the prediction was CORRECT, but barely.

Sunday, February 25, 2024, 5PM: Looking at the data, there was no urgency to the price hike on Thursday, and in fact, several areas in west Michigan stayed close to $3, which looks like is the 0-cent margin price right now. A good check on this is Costco, which has been committed for years to selling gasoline (and hotdogs!) at or below cost, and at the moment, we see they are near $3. I mention Costco because this article came my way the other day, with this quote about their gas prices: “Basically, the CFO admits that Costco wants to be a relative bargain when it comes to gas, rather than offering the lowest price possible.” I guess in some parts of the country, Costco tacks on a bit of extra profit per gallon, but you know, I haven’t seen it here. Maybe I should start tracking them.

Unless we get some weirdness with oil prices or a dysfunctional refinery, I’m not expecting a fresh price hike this coming week. -EA

Updated: February 25, 2024 — 4:38 pm

5 Comments

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  1. Spring fever today. Over 70 degrees and 3 more days forecast near that in the coming week. Filled everything and test started all the implements and got an extra couple cans full ready for the mowing and gardening season. $2.99 in Anderson Indiana. Probably be 50 cents to a buck higher before I need a refill in a few months.

  2. $3.59 in NW Indiana, led by Family Express.

  3. $3.89/3.99 in Chicagoland today.

  4. South Bend IN – Both ND Speedway and some others $3.49 tonight. They were 3.19. Costco 3.03. SBN avg was 3.14 yesterday.

  5. Indianapolis and Indiana (except NW) had a late afternoon hike to $3.499 yesterday.

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