CAPTIAL REGION, N.Y. (WRGB) — With the average price of gas being $4.40 a gallon in Albany according to GasBuddy, CBS6’s Anthony Krolikowski stopped by Costco. The wholesale store holds the second lowest price in the county.
“Costco is at $3.12,” Krolikowski said. “It’s #2 in the area. Round that up by tenth of a cent-“
“$4.12?” asked Patrick De Haan, head of petroleum analysis at GasBuddy.
“$3.12. I don’t know- Maybe I said $4.12,” responded Krolikowski.
“$3.12?” “$3.12.” “Are you on a reservation in New York?”
Nope, just outside Costo. $3.12 a gallon caused lines to form around the multiple pumps. In between waiting and pumping gas, some of the more patient customers shared the low gas prices were a factor in buying a $65 membership.
“Because I’m filling this up good four or five times a week consistent riding,” said Owen Simonsen while on his motorcycle. “So saving $10 on each fill up, it adds up quick.”
“I didn’t have a Costco membership in the past. And I found out that Costco has TOP TIER gasoline or it’s TOP TIER+,” stated Mark Niekrewicz.
Compared to gas stations near the CBS6 studios at $4.45 a gallon, it’s hard to beat. But GasBuddy doesn’t believe the new Costco and its competitor Sam’s Club can wage this price war for long.
“It’s a strategy a lot of new stores that have just opened will use to put their mark on the map. A lot of new stations, especially large chains, will utilize a very low price because that’s the best press. When you have a very low price, word spreads rather quickly that you are in the market,” described De Haan. “Every gallon they sell, they’re probably selling somewhere in the ballpark of a dollar a gallon below their cost. So this is not a healthy price to sell at. This is not sustainable for long periods of time. Whether they’ll do it for a week or two, that’s anyone’s best guess.”