Costco is preparing to open what would be its first-ever gas-only location, turning a vacant retail space into a fueling hub for cost-conscious members.
The warehouse giant will convert a former Bed Bath & Beyond site in Mission Viejo, California, into a standalone gas station expected to open in June 2026, with a second fuel-only location planned for Honolulu, Hawaii, by 2027.
According to the Daily Mail, the Mission Viejo station will be located at 25732 El Paseo, near Anaheim in Orange County. USA Today reported that the facility is slated to officially open in June 2026. It will replace the now-shuttered Bed Bath & Beyond that previously occupied the site.
According to AAA, the national average price of gasoline rose to $3.54 a gallon on March 10 — a full 6 cents higher than the day before. In that environment, Costco's fuel pricing is a genuine competitive weapon. Data cited by US News indicates that Costco's gas averages 10 to 30 cents cheaper per gallon than competitors.
For 2025, the company's fuel stations reportedly brought in 10 percent of its total revenue, powered by 747 gas stations operating globally. That is not a side hustle — it is a meaningful revenue stream. Expanding that footprint with lower-overhead, gas-only sites could be a shrewd capital allocation move.
Neil Saunders of GlobalData pointed to the demand dynamics driving the decision. He told the Daily Mail that Costco's discount fuel is "wildly popular," with existing stations often overwhelmed by traffic.
"Costco is building a new stand-alone location in Orange County to help manage demand that can't be serviced at the station by its store," Saunders told the Daily Mail. The logic is straightforward: if members are already lined up for cheap gas, give them another place to fill up.
"If successful, there are other locations where this could be implemented," Saunders added. That conditional language matters — this is clearly a test case, and Costco appears to be watching the results before committing to a broader rollout.
It is currently unclear when, or if, Costco will create more gas-exclusive locations anywhere else in the United States. But the second planned site — in Honolulu, Hawaii, less than a mile from its busy Iwilei warehouse — suggests confidence that the model has legs.
The gas station expansion is part of a broader pattern. In June 2025, Costco announced it would expand gas station hours nationwide. Weekday hours now run from 6 a.m. until 10 p.m. On Saturdays, stations open at 6 a.m. and close at 8:30 p.m., while Sunday hours run from 6 a.m. to 7:30 p.m.
This is a company that understands the power of relentless value. Its legendary $1.50 hot dog and soda combo has not increased in price since the 1980s. Adjusted for inflation, that food court item should cost closer to $4.65 today — but Costco treats it as a brand promise, not a profit center. The broader retail landscape reinforces how well that strategy is working. Target's stock price has fallen more than 50 percent over the past five years. Over that same span, Costco's stock has tripled, and the total value of Walmart has surged above $1 trillion.
There is a lesson here that extends well beyond retail. When businesses compete aggressively on price and convenience — without government mandates forcing them to do so — consumers win. Costco's gas pricing is not subsidized by taxpayers. It is subsidized by a membership model and efficient operations that keep margins thin and volumes high.
The fact that a private company is doing more to relieve pain at the pump than most policy proposals tells you something about where real solutions come from. Costco currently operates an estimated 920 locations in the United States, plus one confirmed standalone gas station coming soon. If the model proves profitable, the market will do what it does best: scale what works.
For consumers looking to stretch every dollar, a Costco membership increasingly looks like one of the better inflation hedges available — not through complex financial instruments, but through cheaper gas, cheaper food, and a company laser-focused on keeping costs down. Whether Mission Viejo becomes a blueprint or an anomaly, the signal is clear: in a high-price environment, the retailers delivering genuine value are the ones winning market share and investor confidence alike.