Ever pulled up to a Costco gas pump excited about those member savings only to face a frustrating experience? You’re not the only one. While Costco gas stations offer significant discounts compared to competitors, they come with their own set of challenges that can leave members scratching their heads or worse—dealing with vehicle repairs.
Let’s dive into the most common Costco gas problems and how you can protect yourself as a consumer.
Contaminated Fuel Issues at Costco Gas Stations
Water contamination in fuel tanks has become a serious concern at some Costco locations. Since January 2024, multiple drivers in metro Atlanta reported engine damage after filling up at Costco pumps.
Signs of Contaminated Fuel
If you’ve recently filled up at Costco, watch for these warning signs:
- Engine misfiring or running roughly
- Check engine light blinking
- Stalling or difficulty starting
- Unusual smoke from exhaust
- Significant drop in performance
Michelle Robinovitz from Sandy Springs, Georgia, experienced severe shaking and a flashing check engine light just one day after refueling her 2022 Volkswagen Jetta at Costco. Her mechanic confirmed water contamination in the fuel system, resulting in a $700 repair bill.
What to Do If You Suspect Bad Gas
- Stop driving immediately if possible
- Document everything—keep your receipt and take photos
- Contact your state’s Fuel and Measures Division before calling Costco
- Have your vehicle inspected by a certified mechanic
- Request fuel testing from regulatory authorities
Doug Killingsworth, head of Georgia’s Fuel and Measures Division, emphasizes the importance of immediate reporting to enable same-day pump inspections. Most consumers make the mistake of contacting Costco directly instead of regulators, which complicates evidence collection.
Frustrating Gas Pump Nozzle Problems
One of the most common complaints about Costco gas stations involves their vapor-recovery nozzles that frequently shut off prematurely during refueling.
Why Costco Pumps Keep Stopping
Costco uses ORVR (Onboard Refueling Vapor Recovery) nozzles that require a tight seal against your vehicle’s filler neck. This environmentally-friendly design prevents gas vapors from escaping but creates problems for many users:
- Premature shut-offs before the tank is full
- Need to hold the nozzle at awkward angles
- Multiple restart attempts during a single fill-up
- Slower overall refueling process
According to customer reports, these issues are particularly common when filling gas cans or trucks, but affect all types of vehicles.
Vehicles Most Affected by Pump Shutoffs
Some vehicles have more trouble with Costco pumps than others. The worst affected models include:
| Vehicle Type | Common Issues |
|---|---|
| Jeep Renegade | Extremely frequent shutoffs due to narrow filler necks |
| Toyota RAV4 Hybrid | Capless design creates backpressure problems |
| Ford F-Series | Angle of filler neck complicates nozzle seal |
| Older vehicles (pre-2008) | Less compatible with newer vapor recovery systems |
One user on Reddit shared: “I have to hold the nozzle at a specific angle and barely squeeze the trigger to get gas into my RAV4. Takes about 10 minutes to fill up and my hand cramps every time.” This experience is common among Costco gas customers.
Tips for Easier Refueling at Costco
- Try pulling the nozzle out slightly (about half an inch)
- Pump at a slower rate by not fully engaging the trigger
- Rotate the nozzle to find the “sweet spot” for your vehicle
- If all else fails, try a different pump or return during off-peak hours
Payment Processing Headaches
Costco’s payment system for gas creates additional frustrations for many members.
Pre-Authorization Hold Problems
When you insert your card at a Costco pump, a pre-authorization hold of up to $150 is placed on your account. This temporary hold can cause:
- Declined transactions despite having sufficient funds
- Reduced available credit for several days
- Multiple holds if you need to try different payment methods
- Cash flow issues for those on tight budgets
These pre-authorization holds are especially problematic for users of certain credit cards. Customers with crypto.com Visa cards and some Barclays credit cards report frequent declines specifically at Costco gas stations.
Payment Options That Work Best
| Payment Type | Reliability at Costco Pumps |
|---|---|
| Costco Anywhere Visa | Most reliable, no reported issues |
| Costco Shop Cards (gift cards) | Excellent – bypasses authorization holds |
| Debit cards with PIN | Good, but subject to holds |
| Mobile payments | Mixed results, often declined |
| Other credit cards | Variable, some card issuers have more problems |
A helpful workaround: “I started buying Costco Shop Cards specifically for gas purchases. No more declined transactions or holds tying up my credit card.” This strategy is mentioned frequently in online discussions about Costco gas payment problems.
Long Wait Times and Congestion
The bargain prices at Costco gas stations create another common problem: excessive wait times.
Peak Hours and Wait Time Reality
Waiting in line for Costco gas can quickly eliminate any savings you might get from their lower prices. Consider this breakdown:
- Average wait time during peak hours: 15-25 minutes
- Typical savings: $0.20–$0.50 per gallon
- For an 11-gallon tank: $2.20–$5.50 total savings
- Hourly value of your time: Likely more than the savings
One member described that 70% of their Costco visit was spent queueing for gas. The addition of gas stations at existing warehouses has reduced parking capacity by approximately 15% in some locations, compounding the congestion issues.
Best Times to Get Costco Gas
To minimize your wait time, try filling up during these less busy periods:
- Early weekday mornings (6-8 AM)
- Late evenings (8-10 PM)
- Midday Tuesdays or Wednesdays
- Avoid weekends entirely if possible
- Avoid the 1st and 15th of the month (common paydays)
Costco has extended gas station hours—now 6 a.m. to 10 p.m. on weekdays at many locations—to help alleviate demand issues.
Environmental and Safety Issues
While Costco maintains rigorous environmental safeguards for their gas operations, vapor-recovery nozzle malfunctions and consumer handling errors can lead to spills and safety concerns.
Underground Tank Safety
Costco uses double-walled underground tanks with 24/7 electronic monitoring systems to prevent leaks. Stations automatically shut down upon leak detection, and spill kits are standard at all fuel islands.
However, surface spills during refueling remain a concern due to nozzle problems. Gas station attendants are trained to address small spills quickly, but it’s important to notify staff immediately if you notice fuel spilling during your transaction.
What to Do If You Notice a Spill
- Stop pumping immediately
- Alert a Costco attendant
- Avoid starting your vehicle if there’s fuel on the ground near it
- Don’t attempt to clean up fuel spills yourself
- Report larger spills to management
How to File a Complaint About Costco Gas
If you experience problems with Costco gasoline, follow these steps to protect yourself:
Step 1: Report to State Authorities
Your first call should be to your state’s fuel quality agency—not Costco. This official documentation strengthens your case if you need to seek reimbursement later.
Different states have different agencies handling fuel complaints:
- Georgia: Fuel and Measures Division
- California: Department of Food and Agriculture, Division of Measurement Standards
- Other states: Department of Agriculture or Consumer Protection agencies
Step 2: Document Everything
Gather these essential items:
- Gas receipt with date, time, and pump number
- Photos of any visible issues (contamination, damage, etc.)
- Mechanic’s diagnosis in writing
- Repair estimates and invoices
- Timeline of events
Step 3: Contact Costco Formally
After reporting to authorities, file a formal complaint with Costco:
- Visit the warehouse where you purchased the gas
- Speak with a manager and get their name
- Submit all documentation in writing
- Request a case number for tracking purposes
- Follow up in writing if no resolution is offered
Step 4: Consider Legal Options
If Costco denies your claim despite evidence, you may need to escalate:
- Small claims court is viable for disputes under $10,000
- In Georgia and many states, you don’t need legal representation for small claims
- The process is relatively straightforward and inexpensive
Rachel Bernstein of Brookhaven, Georgia, took this route after Costco denied responsibility for damage caused by contaminated fuel. Small claims court provides a structured process for disputes when companies refuse to acknowledge liability.
Is Costco Gas Worth the Hassle?
Despite these problems, millions of members continue to fuel up at Costco. So is it worth it? Consider these factors:
Pros of Costco Gas
- Significant price savings (typically 20-50 cents per gallon)
- TOP TIER™ certified fuel with higher detergent levels
- Consistent quality monitoring and testing
- Convenient location if you’re already shopping
- Extended hours at many locations
Cons of Costco Gas
- Frequent nozzle problems and slow filling
- Potential for contamination issues
- Lengthy wait times during peak hours
- Payment processing complications
- Reduced warehouse parking due to gas station traffic
For many members, the cost savings outweigh these inconveniences. However, if you drive a vehicle known to have issues with Costco’s pump nozzles or you value your time highly, you might prefer the convenience of other gas stations.
Protecting Yourself at Any Gas Station
Whether you fuel up at Costco or elsewhere, follow these best practices:
- Keep all gas receipts until your next fill-up
- Monitor your vehicle’s performance after refueling
- Use the same grade of fuel consistently
- Fill up when your tank is at least quarter-full (to minimize condensation)
- Consider using fuel stabilizer if you don’t drive frequently
Being vigilant about these practices helps you identify problems quickly and provides the documentation you’ll need if issues arise.
The Future of Costco Gas Stations
Costco continues to expand its gas station operations while attempting to address common complaints. Recent improvements include:
- Expanding the number of pumps at busy locations
- Testing new nozzle designs at select stations
- Extending operating hours to distribute demand
- Implementing better traffic flow patterns
- Improving payment processing systems
These changes show Costco is aware of member frustrations and working to address them. However, the fundamental challenges of high-volume, discount fuel operations remain.
By understanding the common problems and knowing how to address them, you can make an informed decision about whether Costco gas is right for you and your vehicle.
