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FinanceCostco opens first standalone gas station in California, pricing 71 cents below county average
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Costco officially opened its first standalone gas station in Mission Viejo, California, on June 24, 2026, marking a strategic expansion of its fuel business. The 17,185-square-foot facility features 40 fueling positions and is accessible only to Costco Warehouse members. The station sells regular gasoline at $4.59 per gallon, roughly 71 cents below the Orange County average, which is expected to pressure nearby convenience retailers like Circle K, ExtraMile, and BP. Costco already has a second standalone gas station in development, though broader expansion plans remain unclear. During the company's third-quarter earnings call, CEO Ron Vachris reported record fuel volume sales, and CFO Gary Millerchip noted that the fuel business is strengthening customer loyalty, with some long-time members using Costco gas stations for the first time. The move underscores Costco's emphasis on fuel as a key driver of membership value and competitive advantage.
Source report
C-Store Dive, an Industry Dive publication By Brett Dworski Tue, July 14, 2026, 3:00 AM PDT | 2 min read
COST: -0.25%
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Dive Brief
- Costco officially opened its first standalone gas station in late June, a spokesperson from Mission Viejo, California, confirmed to C-Store Dive.
- The retailer held a ribbon-cutting ceremony for the gas station on June 24. The site features a 17,185-square-foot gas canopy with 40 fueling positions and is accessible only to Costco Warehouse members, according to city planning documents reviewed by C-Store Dive last year.
- Costco already has a second standalone gas station in development, though it remains unclear how broadly the retailer plans to expand the concept.
Dive Insight
Regardless of Costco's long-term plans for standalone gas stations, the new Mission Viejo location will almost certainly put pressure on nearby convenience retailers, which are unlikely to match the wholesaler's aggressive fuel pricing. According to Costco's website, the station is selling regular gasoline for $4.59 per gallon — roughly 71 cents below the Orange County average, according to AAA.
While the site does not include a Costco warehouse or convenience store, it could divert traffic from nearby retailers. Circle K, ExtraMile, United Pacific, BP, and Shell locations are all in the area and could see declines in visits and merchandise sales.
The station, located about 50 miles southeast of downtown Los Angeles, opens as Costco continues to emphasize its fuel business. During the retailer's third-quarter earnings call in May, President and CEO Ron Vachris said each of the quarter's four-week fiscal periods set new company volume sales records, with the final five weeks becoming Costco's five highest-volume fuel weeks ever.
Vachris and Executive Vice President and Chief Financial Officer Gary Millerchip both said the retailer's fuel business is strengthening customer loyalty across Costco's broader operations.
"We're seeing some members that have been members for some time but are using the gas stations for the first time — we think that's also an encouraging sign for long-term loyalty," Millerchip said.
Representatives from Costco did not respond by press time when asked to comment on the Mission Viejo site or the company's broader plans for standalone gas stations.
Recommended Reading
- Costco building another standalone gas station
Source
Yahoo FinanceWestern
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Costco Opens First Standalone Gas Station in Mission Viejo, California