Even Costco Gas Is Expensive in This State

Motley Fool03-29

KEY POINTSCalifornia has some of the highest gas prices in the country.Costco gas is expensive in the state, but still much cheaper than the state's average.Many people can save money by using a gas ...

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The average price of Costco gas from three California locations (Los Angeles, San Francisco, and San Diego) is about $4.45 per gallon, compared to $3.46 nationally.Of course, Costco members in California will still save lots of money on gas, considering $4.45 per gallon is about $0.45 cheaper than the average price per gallon in the state.The good news is that no matter where you buy Costco gas, you'll likely get a better deal at the wholesale warehouse company than at other gas stations. Here's how drivers can maximize their gas savings to help their personal finances.1. Choose Costco gas no matter where you liveGasBuddy says Costco gas can be $0.05 to $0.25 cheaper per gallon than at most gas stations and can be as much as $0.30 cheaper. A gallon of regular unleaded fuel is $2.88 at my local Costco, which is $0.21 cheaper per gallon than the gas station down the road from my home.If you're skeptical about buying gas at the discount wholesale club, you shouldn't be. A study conducted by AAA found that Costco gas is a top-tier fuel and can help preserve an engine's original performance and manage emissions over time.2. Use a Costco credit cardDrivers who want to save even more on Costco gas should consider getting a Costco credit card. The card gives you a high cash back rate on eligible gas purchases with a generous yearly cap, followed by a more modest rate.That can be a significant savings on top of the already-inexpensive price for Costco gas. If you own an electric vehicle, the same cash back rewards also apply to EV charging.An added benefit of the credit card is that you'll earn cash back on eligible Costco purchases. With all these rewards, this card could be a great choice for Costco members who frequently shop at the store and gas up their cars often.3. Find a good gas rewards cardDrivers who don't have a Costco membership can still save money at other gas stations by using a gas rewards card.For example, a gas rewards card might offer 3% cash back on eligible gas purchases and 1% back on other eligible purchases. If you fill up your tank regularly, a card that earns you more rewards points or cash back on that expense can be a big source of savings. Just keep in mind that Costco only accepts Visa credit cards in person, so you'll need to buy gas at other stations besides Costco unless you have a Visa card.How to find cheap gas without signing up for anythingMy family and I buy Costco gas about once per month, so I find it helpful to have a few alternative ways to find inexpensive gas.One way I do this is by using apps like GasBuddy and Google Maps to find lower-priced gas stations on my phone. I've often used GasBuddy to find the best prices near me, and it's always shocking to see the different prices in the same general area.You can also search for gas stations in the Google Maps app. The results will display nearby gas station locations along with the price of a gallon of regular unleaded fuel. I find this especially helpful when I'm on long road trips and want to save the most money on a fill-up.With gas prices at a four-month high, now is a good time to use a gas rewards card, Costco membership, or an app to find a better deal. With so many options available, it's easier than ever to avoid paying top dollar at the pump.Alert: our top-rated cash back card now has 0% intro APR until 2025This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! 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