Why Costco is building its first standalone gas station

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Costco is set to open a standalone gas station in Mission Viejo, California with a new bid to promote sales in the spring of 2026.

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Costco’s upcoming location in California doesn’t have the famous $1.50 hot dog, rotisserie chicken, or even a warehouse to browse. There are only a few dozen gas pumps.

The membership-only retailer plans to open its first standalone gas station in Mission Viejo, California in the spring of 2026. The coastal city, located on the outskirts of Los Angeles in nearby Orange County, approved the Planning and Transportation Board for Costco’s largest 40 pump stations in March. Construction is scheduled to begin this fall.

This new site comes as Costco works to expand its gas station offerings to members. Members pay between $65 and $130 a year to shop at the warehouse giant. While gasoline has a lower margin than other products, Costco believes it will increase traffic to stores.

In addition to the 5% reward Costco offers to credit card holders, the cheaper gas is one of Costco’s top memberships. Standalone stations can help reduce traffic in existing warehouses.

“Costco Gas is extremely popular with its members due to its low prices,” said Neil Saunders, retail analyst at Research and Analytics Firm GlobalData. “If successful, there are other places where we can implement this.”

Mission Viejo Mayor Robert Louch said he hopes the station will attract “thousands of drivers.” Costco did not immediately respond to requests for comment.

During the revenue call in March, CEO Ron Vachris said the company could extend its time at its gas stations in North America to fill up with Costco, leaving the station open an hour later, allowing it to open earlier in the day.

Vachris said the company has also upgraded its gas station facilities, with 60 locations in 60 expansion phases as of March.



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