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Monday, October 12, 2026

Costco Opens First Standalone Gas Station in Southern California, Drawing Mixed Reactions

The members-only fuel station in Mission Viejo offers lower prices but lacks amenities like diesel and a car wash, prompting varied responses from shoppers.

Business & Markets • 3 months ago
Costco Opens First Standalone Gas Station in Southern California, Drawing Mixed Reactions

Costco has opened its first standalone gas station in the United States, located in Mission Viejo, Southern California. The members-only fuel station aims to provide lower gasoline prices to Costco members but has drawn mixed reactions from shoppers who noted the absence of several key features.

The new location, which replaced a former Bed Bath & Beyond store, offers gasoline at $4.79 per gallon. This price point is significantly lower than the average prices of $5.35 per gallon in Orange County and $5.48 per gallon in Los Angeles County, according to AAA. The opening comes just days before California's statewide gas tax is set to increase on July 1.

Despite the attractive pricing, many consumers have expressed disappointment online, with social media users pointing out the station does not offer diesel fuel, propane refills, or a car wash. Some also commented on the lack of electric car chargers and a food court, features often associated with Costco's traditional, attached gas stations.

"This is really strange," one Reddit user wrote. "I expect all those things and electric car chargers and a food court if you’re not even going to have a Costco [warehouse] to shop at."

Another user added, "No diesel is really disappointing."

However, some shoppers welcomed the standalone concept, suggesting it could help alleviate congestion at nearby Costco warehouse stores, where crowded parking lots and long lines can make fueling up a challenge.

"The one down the road is a nightmare with space and crowds," one commenter noted. "If this is just a dedicated gas station, it might help alleviate it. I go sometimes to just get gas and this will make it easier for me and my hubby to visit."

Costco operates approximately 920 warehouse locations across the U.S. The company's gas business is a significant revenue driver, accounting for about 10 percent of total revenue in 2025 through 747 fuel stations worldwide. In June 2025, Costco expanded gas station hours nationwide, with weekday operations from 6 a.m. to 10 p.m., and weekend hours adjusted accordingly.

Neil Saunders, a retail analyst with GlobalData, previously suggested that the standalone concept could be successful due to Costco's popular low-price fuel strategy. He indicated that the Mission Viejo location was built to manage demand not fully serviced by its existing store. It remains unclear if Costco plans to expand this fuel-only concept to other locations beyond the Mission Viejo station and a planned location in Honolulu, Hawaii, expected to open in 2027.


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