Executives at Costco and Walmart detected a clear change in the way drivers fill up gasoline in United States. Customers make more trips to refuel, but pump fewer liters per visit. At the same time, they are searching more intensely for gas stations with lower prices.
This behavior is explained in a context of rising prices due to the war with Iran and the blockade of crude oil shipments through the Strait of Hormuz. According to NPR and Fox Business, the national average price of regular gasoline reached $4.39 per gallon on Thursday, according to the AAA organization.
That figure represents an increase of $1.22 compared to a year ago. Additionally, spending at service stations in April rose 21% year-over-year. The increase in costs directly affects families and monthly budgets of millions of households across the country.
How Did Consumer Behavior Change at Costco?
Costco executives told investors that their gas stations sold record amounts of gasoline. Chief Executive Officer Ron Vachris stated that the company had never sold as much fuel as it did between April and mid-May. Sales hit all-time highs in the quarter.
According to the executive, all three four-week fiscal periods of the quarter marked all-time sales records for the company. The last five weeks of the period concentrated the largest sales volume recorded in its history. Demand is unusually high for the period.
Vachris added that the “context of macroeconomic uncertainty” led many members to use their gas stations. High consumer price sensitivity drove these record volumes. Many members used Costco gas stations for the first time in the third fiscal quarter.
Gary Millerchip, Costco’s chief financial officer, described a concrete change in customer behavior. Many members are increasing the frequency with which they visit the gas station to refuel between fill-ups. This occurs at an interval that would normally be until the tank empties.
Vachris highlighted the team’s work in coordinating necessary deliveries to meet demand. At many locations, that requires multiple daily gasoline deliveries. Logistics have intensified to prevent pumps from running out of fuel.
What Is Happening at Walmart’s Gas Stations?
At Walmart gas stations, consumers started in recent weeks to pump less than 10 gallons at a time. This behavior had not occurred since 2022, when fuel prices were also under pressure. John David Rainey, the company’s chief financial officer, warned investors
