Cheaper gas in store for drivers

Worried about high gas prices? Join the club — the warehouse club, that is.

Rising fuel prices are pumping up gasoline sales at big box chains including Costco, Sam’s Club and Westboro-based BJ’s, which often offer gas at rock-bottom prices.

“Wholesale clubs generally use gasoline as a ‘loss leader,’ so we often find some of the best prices there,” said Patrick DeHaan of market tracker Boston GasPrices.com.

Yesterday, the Revere BJ’s and Danvers Costco were tied with eight other stations in offering Greater Boston’s cheapest gas: $3.59 a gallon for self-serve regular.

That’s well below the $3.75-a-gallon average — up 3 cents over the last week — that BostonGasPrices reported for the Hub yesterday.

Warehouse clubs cost around $50 a year to join, but consumers who sign up can get big discounts on a wide variety of goods — often including gas. Nine of BJ’s 24 Massachusetts stores have members-only gas stations, while one of six Bay State Costcos sells fuel. Sam’s Club also plans to open its first Bay State gas station next month in Worcester.

BJ’s spokeswoman Kelly McFalls said her company’s gas sales are rising with today’s high prices, while Costco recently attributed much of its quarterly revenue gains to fuel sales.

Dan Geiman, who follows Costco for Seattle financial firm McAdams Wright Ragen, said warehouse clubs sell gas on the cheap partly to get shoppers inside the tent.

“There’s no question that (low-cost gas) does get people into the stores,” he said.

Stop Shop, which operates gas stations at 35 of its 130 Massachusetts supermarkets and doesn’t require annual membership to fuel up, is also reporting brisk fuel sales.

The Danvers Stop Shop was one of the 10 stations offering $3.59-a-gallon fuel yesterday.

Spokeswoman Suzi Robinson said the grocery chain’s popular “Gas Rewards” program can knock as much as $2.20 a gallon off that.

But not everyone is filling up on discount gas.

Lance LaGrange of Hyannis bought fuel for his minivan yesterday at a Cambridge Shell selling premium at $4.39 a gallon — the highest price in town, according to BostonGasPrices.com.

“It’s ridiculous, but what can we do?” La Grange said. “Your car has got to run on gas.”

Leave a Reply