Walmart is rolling into the fuel business in a big way, and the move could reshape its rivalry with Costco. With plans to open more than 45 new gas stations across the U.S. this year, Walmart is flexing its muscles in a space traditionally dominated by warehouse clubs like Costco and Sam’s Club.
“As EVs remain a long-term play, gas is still king,” said Joe Camberato, CEO of NationalBusinessCapital.com. “The switch to electric vehicles isn’t happening overnight, and retailers know there’s money to be made from traditional fuel for years to come.”
Walmart’s new gas stations, set to operate at stores without Murphy USA pumps, will boost its total fuel footprint to over 450 locations across 34 states, Quartz reported. The company is offering low prices at the pump and up to 10 cents per gallon off for Walmart+ members. It’s a classic one-stop-shop strategy aimed at bolstering customer loyalty and driving foot traffic.
“Walmart’s fuel expansion signals an effort to rival Costco’s highly successful gas business, which made up around 12% of its total sales in 2024,” said Usha Haley, an international business expert at Wichita State University. The key difference? Walmart’s stations are open to everyone, unlike Costco’s members-only model.
But Costco isn’t standing still. Earlier this year, CEO Rob Vachris announced the company would extend hours at its members-only fuel centers, keeping most locations open until 10 p.m. It’s a move designed to deepen loyalty and capture more sales as EV adoption remains gradual.
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Industry watchers say the battle isn’t just about gas. With inflation, tariffs, and supply chain disruptions hitting margins, retailers like Walmart and Costco are leaning into fuel as a reliable revenue stream. And with Walmart openly acknowledging that tariffs on Chinese goods could impact prices, low-priced gas is one way to keep customers coming back.
“The rise of EVs will eventually change the game,” said Manish Choudhary of SymphonyAI. “But for now, these retailers are competing for a bigger slice of the fuel pie, and Walmart’s latest move is a clear signal of intent.”
