And they don't take cash, only allowing members to use a special gas card or Costco credit card. Tim Hamilton, a spokesman for the Automotive United Trades Organization, which represents gas station owners in Washington state, says Costco's motives are obvious. One of the ways to do that is to offer cheap gas. The megastores can strike better deals with wholesalers than can the independents, who don't carry much negotiating clout and are often collared by long-term contracts with the oil companies. Hamilton believes that the megastores will drive out the smaller gas stations and eventually increase prices.
Independent dealers fear that too.
It's a trend that's occurring across the country. But he said there is no evidence that prices will eventually go up. On balance, I think the consumer will be a lot better off. Even with the same number of pumps, Freitag says his BP station sells less gas today than it did 10 years ago. He understands that the future is uncertain.