The retailer slows price cuts at pumps to offset losses from prior increases, even as national averages fall below $4.12 per gallon.
Costco is maintaining higher gasoline prices than competitors despite a three-week decline in national averages to $4.12 per gallon. Crude oil below $100 per barrel has driven the drop since late May, when prices peaked at $4.56.
The warehouse chain deliberately delays price reductions to recoup profits lost during periods of rising costs. This strategy, discussed in earnings calls, contrasts with rivals like Kroger and Walmart, which adjust prices more quickly.
Former CFO Richard Galanti defended the practice, noting it softens the impact of price spikes for members. The approach aligns with Costco’s broader pricing strategy for its gas business.