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Comparing Prices: Local Gas vs. Beltsville Costco Gas

Are Wheaton and Kensington residents saving money when they drive to the Costco in Beltsville to buy gas?

 

Several of the Montgomery County residents who testified at a public hearing last week in support of a proposed Costco gas station in Wheaton mentioned that they currently go to the Beltsville Costco to purchase cheap gas, and so they would benefit from a Costco station closer to home.

How cost-effective is it to go to the Beltsville Costco for gas instead of buying fuel at a local (non-Costco) gas station in the Wheaton area?

David Becker, a Kensington resident, raised this question and shared some financial calculations in the comments section of a recent blog post on Patch about the proposed Costco gas station at Westfield Wheaton

Based upon real time data, the cost of going to CostCo in Beltsville is higher than purchasing it in Wheaton...

Cost of Gasoline at local Wheaton station: $3.35/$40.20 to fill a 12 gallon tank, 
Cost of Gasoline at Beltsville CostCo: $3.25./$39.00 to fill a 12 gallon tank, 
Cost Savings of $1.20 to purchase a tank of gasoline at CostCo.

Is there really a savings?

Current Average MPG of American Automobiles is 18 MPG (per http://www.project.org/info.php?recordID=384).

The distance for a round trip from Wheaton to Beltsville is 20 miles. This equates to a cash outlay of $3.61 at the Beltsville CostCo prices to pay for the round trip from Wheaton to Beltsville and back again.

Subtracting the cost savings of the purchase of CostCo's lower grade gasoline ($1.20) from the cost of taking the trip ($3.61) equates to a "loss" of $2.40. Not to mention the time it takes to travel there and back (whatever your time is worth), idling in line, and the burning of fuel while waiting in line. (if a 15 minute wait consumes 1/5 of a gallon of gas while idling, then the cost for that is .65).

Overall loss: $3.05. You've been losing money buying gas at Beltsville.

Increase the cost per gallon another .05 per gallon to use your credit card at another station and you're still ahead.

Related Topics: Costco Gas Station

Timothy

5:53 pm on Monday, June 25, 2012

There are a lot of flaws in this analysis. One of the biggest is to assume that every trip to Beltsville Costco is for the sole purpose of buying gas. If a Costco member is going to Costco to shop anyway, the additional "cost" of buying gas while there is practically nothing.

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Timothy

6:05 pm on Monday, June 25, 2012

Here's another flaw: if you go to the linked website the author cites for his 18 MPG figure, you'll find that stat is for SUVs, etc. The average for plain old passenger cars is about 23. Check it out for yourself; don't just take somebody's word for the facts.

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The Big Egg

10:12 pm on Monday, June 25, 2012

You're quick to nit-pick, without looking at the overall picture. Even if you go with your 23mpg figure, you have found a difference of $0.44, which at best brings your net loss for driving there from his $3.05 to $2.61.

Timothy

9:19 pm on Monday, June 25, 2012

And here's the third strike: The author's figures are just wrong. If you check www.gasbuddy.com, you'll find that as of this evening the price of gas at the Beltsville Costco is $3.17 per gallon, as compared to $3.39 at the Sunoco at Viers Mill and University. That's a saving of 22 cents per gallon, not the 10 cents cited by the author. And since the average MPG is 23, you can get to Costco and back on less than a gallon; i.e. less than $3.17. And if you were going there anyway....

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The Big Egg

10:17 pm on Monday, June 25, 2012

Oh, and I'm not sure why you're comparing Costco's no-name gas to Brand-name Sunoco. Compare Costco to Econoway or Freestate. They are routinely within a few cents of Beltsville gas. Not according to Gas Buddy, but according to my own observation when I drive to Beltsville Costco. (I never buy gas there, because the lines are insane and not worth the difference in price--even ignoring the cost of getting there.)

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David Becker

11:46 pm on Monday, June 25, 2012

Timothy,

My posting was written to respond to those people who insisted that they drove to Beltsville to purchase Costco's cheaper gas; rather than purchase it locally. True, I chose the SUV mpg statistics; and as the Big Egg noted, the price difference is negligible. Lastly, the prices I indicated as those of Costco and local Wheaton gas stations were the prices the evening of June 20; so these figures are correct for that date.

AntonFisher

10:01 pm on Monday, June 25, 2012

Timothy,
You must really want Costco gas..

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Timothy

9:07 am on Tuesday, June 26, 2012

Actually, I don't really care about Costco gas. The folks who are opposing the station in Wheaton MAY have a very good point about the potential health dangers. I really don't know one way or the other. But I certainly object to an inaccurate economic analysis being used to justify opposition. Way too often in our society people are willing to accept any half-baked analysis that endorses the position they already support. If you think the Costco gas station in Wheaton is a potential health hazard, base your objections on that. Don't make stuff up. Thnx

ED

8:32 am on Tuesday, June 26, 2012

Gas distributers and local taxes play a big part in gas prices in various locations. As far as I know, there is no guarantee that a Wheaton Costco gas station, if allowed, will have the same per gallon price as the Beltsville Costco gas station. On a recent visit to Frederick, the Costco gas station (with the unbearable lines) had prices equal to or only a couple of pennies less than other gas stations in the area. I believe it just isn't worth the aggravation and potential health risks by adding these types of mega-gas stations near schools or recreational facilities in Montgomery County - you're better off shopping at Giant and taking the savings off of your Shell bill.

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Timothy

9:16 am on Tuesday, June 26, 2012

BTW, gas buddy says the price at Free State is $3.29, still 12 cents higher than at Costco Beltsville. People posting comments here seem to assume I'm some kind of shill supporting Costco's Wheaton station. I'm not; I've never purchased gas at Costco. And I tend to think that the traffic problems that I think are likely to occur at Wheaton Plaza if the station is built outweigh the savings from cheaper gas. And I'm not qualified to judge the health issue. I just like people to be accurate. Thnx.

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AntonFisher

10:41 am on Tuesday, June 26, 2012

Today's price on GasBuddy at:
Citgo Glenmont 3.23
Aspen Hill Gas 3.24
BP at GA and CT 3.25
Exxon at GA and CT 3.25

All within a 3 miles from tehproposed Costo station....

Bill Samuel

10:13 am on Tuesday, June 26, 2012

It's a good point that there is no general wholesale price for gasoline. The price varies by geography so much that it might be 20 cents different for 2 stations less than a half mile away. It is unlikely that they would be able to price much under the nearby Free State (which I think has its own supplies, as prices rarely vary by more than 2 cents among their locations in Wheaton, Glenmont & Burtonsville).
Do Costco gas stations only sell to members? If so, it is totally unjustified to establish a private gas station in the Wheaton location when even a public station is extremely hard to justify. And I still think there ought to be mass civil disobedience if the Costco itself, for which taxpayers were forced to donate $4 million to build by the reverse Robin Hood Ike Leggett, requires Montgomery County taxpayers to pay membership fees to purchase items at a store which they were forced to invest in. There's no way that should be allowed to stand. I have written Leggett and the Council members about this issue about whether we as taxpayers don't thereby get the right to shop without paying a membership fee since we already paid through our taxes. Only one (Leventhal) has responded, and he didn't answer the question and his reply was nasty. OUr County government seems to be contemptuous of ordinary taxpayers.

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AntonFisher

10:35 am on Tuesday, June 26, 2012

The County never gave any money to Costco. The money was given to Westfield, the mall owner. Costco never directly received any money from the tax fund and therefore they are not obligated to allow non members in.

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ED

10:59 am on Tuesday, June 26, 2012

Costco gas stations only sell to members. As such, if competitors are driven out of business, "non-members" could end up travelling further and paying more for their gas. Westfield has received $ 10 million in tax-payer "economic development funds" since 2005 - $ 6 million to build the Macy's garage (400 spaces for public "walk-off use" until 2020) and $ 4 million for the construction of a first floor under the Costco store.

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Timothy

1:48 pm on Tuesday, June 26, 2012

Mr. Samuel: First, I have a very hard time believing that Councilmember leventhal was "nasty"; it simply isn't characteristic of him. Second, even if we were to accept your dubious logic, you're wrong. The lowest cost membership at Costco is $55 per year. Your "investment" is about $4. Giving free memberships to everybody in the County would cost Costco about $55 million per year. And you can get a one-day pass for Costco and only pay 10% above the "member prices". I recommend it.

Andrea

12:26 pm on Tuesday, June 26, 2012

In today's economy, it is understandable that many people are attracted by a $.10-12 cents savings but I believe that those same people would be willing to forgo a gas station if they understood the very real risks, especially for children, associated with it.
There is no shortage of data about the direct link between air pollution and negative health impacts. This EPA web page provides a very clear description about these health impacts and NIH’s Report on Carcinogens, Twelfth Edition (2011), specifically identifies gasoline filing stations as a source of benzene. Benzene enters the body through inhalation and is directly linked to leukemia, a leading childhood cancer. Please see http://www.epa.gov/apti/course422/ap7a.html and http://ntp.niehs.nih.gov/?objectid=03C9AF75-E1BF-FF40-DBA9EC0928DF8B15 - click Access Report Contents and select Benzene.
The proposed Costco gas station will be the largest in all of Montgomery County and the site sits less than 150 feet (that's only 50 yards) from homes and almost as close to a community pool AND a school for children with special needs (including some who use oxygen). The health of our children and our communities must be at the forefront of any decision and the zoning text amendment is appropriate at this time and must set a precedent that mega-gas stations cannot be located in such close proximity to homes, community centers, schools, etc.

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Timothy

1:54 pm on Tuesday, June 26, 2012

Andrea: That's an excellent and persuasive summary of the legitimate reasons the Wheaton Costco gas station might be a bad idea. The only thing I think might need to be added is a mention of the possible traffic/vehicle flow problems that might also arise. Thank you for bringing us back to the real point of the discussion.

David Becker

4:39 pm on Tuesday, June 26, 2012

Timothy, traffic and parking concerns have bee a part of the conversation all along. If Costco puts in the gas station they're going to lose a "lot" of parking space; which they don't have a lot of to begin with.

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Chester C.

8:49 am on Wednesday, June 27, 2012

Really? There's a parking problem at Wheaton Plaza?

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The Big Egg

10:14 am on Wednesday, June 27, 2012

Chester, there is not a current parking problem at Wheaton Mall because it's an anemic mall. There's a tattoo parlor next to the Gymboree. Makes me want to shop there for my kids.
But, Costco is going to change this. Think about the parking nightmare at the Pentagon City Costco. And, remember that if you've gone to Wheaton Mall around Christmas time, getting out of there is very difficult. This is likely to be our new weekends there. Adding gas as an attraction at Costco will, metaphorically, add fuel to the flame.

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David Becker

1:09 pm on Wednesday, June 27, 2012

Anemic? I live right next to Wheaton Plaza and shop there regularly. Higher end stores are moving in regularly and since Target moved in parking has become more and more difficult. When Costco and Dick's Hardware move in, the remaining parking spots will become more scarce.

Sasha

8:08 pm on Tuesday, June 26, 2012

Except that I get 36 mpg not 18. Which cuts your calculation of the cost in half. And the cost is variable. I've seen 40-50 cents per gallon differences. The analysis is statistically bogus.

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David Becker

9:56 pm on Tuesday, June 26, 2012

Sasha, I'm glad that your car gets such great mileage. Very few automobiles get that, unless they a sub-compact or an hybrid. My calculations were based upon the average consumption of gas, not your automobiles. Also, the analysis is not bogus and was based on data collected on Friday the 20th. So, on that date, my figures were correct. This evening, www.gasbuddy.com shows the competing gas prices as:

Freestate $ 3.29 per gallon
Beltsville Costco $3.17 per gallon

Not much of a difference. Both locations have lowered their prices since last Friday, but the cost difference is still only about $1.44; that's less than a pack of gum.

It's obvious you want the gas station, Sasha. Why not just state why you want it rather than attacking and name calling?

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Wheatoner

9:55 am on Wednesday, June 27, 2012

Ok, I'm going to do my own bit of math here. So we get $.12 savings per gallon of gas versus the Free State down the street. Costco will pump 12MM gallons of gasoline a year which gives a net savings of $1,440,000. There is also great utility in being able to use a credit and/or debit card rather than cash.

So we got nearly million-and-a-half dollars per year that can be spent in the community rather than on gas plus added customer utility, and a few NIMBY's want to stop that based on unsubstantiated fears and paranoia? Yeah... count me in the no sympathy camp.

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AntonFisher

10:38 am on Wednesday, June 27, 2012

GinWheaton- What do you think is the cost of one gas spill, extra traffic fumes, littler cleaning from the added traffic, leakage into ground, lost parking spots at the mall, etc.? If someone really want Costco gas that much, they can move near an existing one. Property value is cheaper there anyways.

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Wheatoner

10:49 am on Wednesday, June 27, 2012

Anton - With the new EPA standards on gas stations and vehicle emissions; I would imagine very little annualized costs for the things you mention. Much less then any added utility realized by building the station.

The Big Egg

10:08 am on Wednesday, June 27, 2012

GinWheaton--Not sure where you get your figures from, but it's a narrow slice of the picture. Consider that Costco would have to pay some portion of the credit card transaction fee to the card issuer (~3% would eat up almost $0.10 of the $0.12 savings). In addition, you get the loonies who, as Mr. Becker points out, will probably burn more gas driving long distances to wait in line to buy ostensibly cheap gas.

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Wheatoner

10:37 am on Wednesday, June 27, 2012

Yes, but the interchange fee is paid by the merchant, not the customer so it is properly not reflected in the above analysis. The customer will see the whole 12 cents as savings. Interchange fees do get rolled into the cost for everything thing that Costco sells and can raise prices across the board, but as David pointed out above, the current price for Costco gas is 12 cents cheaper than the lowest priced option in Wheaton. So the customer pays 12 cents per gallon less, multiplied by the 12MM gallons that Costco claims will be pumped per year gives you your $1.44MM savings. Then you also get your added utility of not having to carry cash as well as any reward points accumulated - Costco only takes Amex and Debit, so approx 1% for the CC users.

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ED

12:57 pm on Wednesday, June 27, 2012

GinWheaton - your comment "the customer will see the whole 12 cents as savings" applies only to Costco members and does not take into account the fact that the prices in Wheaton may not be the same as the prices in Beltsville. Regardless, this whole article was written because of a zoning text amendment that protects the whole county, not just for your so-called NIMBY's. If you're currently driving to Beltsville for your savings, you're probably already spending your $1.4 million in Montgomery County anyway. As a matter of fact, since Westfield already recieved $ 4 million for the "Costco expansion", you should break even in about 3 years.

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Wheatoner

2:22 pm on Wednesday, June 27, 2012

-"If you're currently driving to Beltsville for your savings, you're probably already spending your $1.4 million in Montgomery County anyway."

Actually what you are doing is wasting 1.4 million on un-necessary highly priced gas and/or wasting that much fuel that it costs to drive to Beltsville. Either way it's a loss for the community. When the customers don't have to pay as much for fuel, they can spend more on things like subs from Marchone's or beer at the Limerick. That seeds real economic growth.

But of course, we wouldn't want to grow because a few NIMBY's are crying. Welcome to Montgomery County.

ED

3:12 pm on Wednesday, June 27, 2012

GinWheaton - Have another beer at Limerick's - there's nothing in this ZTA that bans these mega-gas stations from areas that are not near schools or recreational facilities. Actually, your cost savings right now might not be enough to buy a beer at Limericks and, as I've said before, there's no guarantee Costco members will get the same gas prices in Montgomery County that they currently get in Prince George's County. As far as economic growth in Wheaton, I've never been to a Smartgrowth seminar where the State or County planners advocate putting car magnets in the middle of the Smartgrowth area. The Wheaton Costco gas station is not proposed for my back yard and I still support limiting where these mega-gas stations can be built.

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HaveSomeSense

4:22 pm on Thursday, July 19, 2012

There's a lot of people in this world who are so happy to make other people's lives a misery as long as it's not their own. GinWheaton is probably one of those people who would shout the loudest and cry the most if there was something affecting his house.
I think you'll find hardly anyone is opposing the Costco, a lot are not even opposing the gas station, but those that are oppose WHERE Costco want to place it (opposite houses, the swimming pool and close to a school) because it's convenient. Costco should build this on the main road where all other gas stations are built.
It's common sense and people selfish enough to dismiss people as being NIMBY's should be ashamed of themselves.

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