Costco hits 'record-breaking' gas sales as fuel costs keep climbing — memberships might help consumers cut costs, but does one make sense for you?

Buyers aren’t happy. A University of Michigan survey puts consumer confidence at record lows.

Do rising prices make a paid membership more worth it than ever — at Costco, or anywhere?

Gas prices draw members in

Gas prices have proven to be good for Costco’s business. The retailer’s reported revenue grew 12%, in part because gas buyers were ducking into Costco’s warehouses.

How much did Costco members benefit?

Savings at the pump are real. U.S. News estimates you save 10 to 30 cents per gallon at Costco pumps compared to local stations. That’s a difference big enough to catch the eye of drivers sweating for a deal.

One expert seems to think Costco’s prices hold up. Patrick De Haan, GasBuddy’s Head of Petroleum Analysis, told the San Francisco Chronicle that “Costco tends to be one of the most aggressive competitors when it comes to prices.”

Doug Johnson, an AAA spokesman, added that Costco is able to offer lower prices by taking a lower price margin than competitors: 14%. That’s significantly less than the industry-standard of 20%.

That said, the math doesn’t always pencil out. De Haan said long wait times and longer drives can cancel out Costco savings. And that’s not accounting for the price of entry; for the privilege of waiting in line, you need to purchase the Costco membership.

How much fuel saves you money? An analysis by Kiplinger estimates a Costco Gold member must fuel 260 to 1,300 gallons per year to break even with the $65 membership. The math is similar for Sam’s Club and BJ’s, two warehouse clubs that offer members discounts at the pump.

But Costco members don’t just pump gas. In fact, Vachris has said that customers who pump gas at Costco tend to spend more inside the store.

When a membership pays for itself

How do savings hold up when Costco members enter the warehouses?

Costco’s members-only prices are very competitive with grocery stores. A study by Consumers’ Checkbook found that items sold by Costco were 8% cheaper than Walmart and 13% cheaper than Target. BJ’s was priced even better, with items priced 15% cheaper than Walmart’s, though customers said Costco’s items were higher-quality.