Costco customers are expressing frustration over the closure of propane refill stations at several warehouse locations, including a long-standing site in Tucson, Arizona. The NW Tucson warehouse, No. 431, which has operated since 1989, is the latest location to discontinue the service, prompting an outpouring of disappointment from shoppers who relied on it for affordable refills.
This development follows similar reports from other U.S. locations, including Winter Park, Florida, where a propane station closed in April and the space was converted into additional parking. Costco members in Canada have also reported propane station closures throughout 2026.
Loyal shoppers are speculating about the reasons behind Costco's decision to eliminate the service. One recurring theory, shared on social media platforms like Reddit, suggests that a senior executive within the company dislikes the propane business, despite its apparent financial success. However, there is no independent evidence to support this claim, and Costco has not publicly commented on any specific executive's involvement.
Beyond rumored executive disapproval, practical considerations are also being cited. Operating a propane refill station requires trained staff, specialized equipment, and adherence to safety regulations, which can involve significant costs and logistical complexities. These stations also occupy valuable space in what are often already crowded Costco parking lots.
Some members suggest that the space occupied by propane stations could be more profitably utilized for additional parking, a move that could improve the shopping experience for a larger number of customers. One calculation indicates that removing a propane installation could free up approximately eight to ten parking spaces.
For customers, the appeal of Costco's propane service lay in its competitive pricing, with refills often costing significantly less than at alternative providers. The ability to refill their own tanks, rather than exchanging them for a pre-filled cylinder, also offered potential cost savings by ensuring customers received the full volume of propane. With these stations disappearing, shoppers are now seeking alternative sources for their propane needs, with options like Tractor Supply, U-Haul, and local businesses being mentioned.