Gas buying habits shift at Costco and Walmart, executives report
Americans are changing their gas-buying behavior in response to high prices, according to executives from Costco, Walmart, and Murphy USA. Costco’s CEO Ron Vachris reported record fuel sales between April and mid-May, with stations requiring multiple daily deliveries. Finance chief Gary Millerchip said members are visiting more frequently to top up smaller amounts due to concerns about future prices. At Walmart, CFO John David Rainey noted that customers have begun filling up with fewer than ten gallons at a time for the first time since 2022, which he described as an indication of stress. Rainey also said high-income customers are spending with confidence while lower-income consumers are more budget-conscious. Murphy USA CEO Mindy West said the chain is drawing more first-time shoppers and lapsed customers returning. The average U.S. gas price was $4.39 per gallon, up $1.22 from a year ago, and federal data showed a 21% surge in gas station spending in April. Executives warned that prices could rise further due to blocked oil tankers at the Strait of Hormuz and low global oil reserves, which could also increase prices on store shelves.
What’s reported
Costco sold record amounts of fuel between April and mid-May, according to CEO Ron Vachris.
Walmart customers began filling up with fewer than ten gallons at a time, first time since 2022, per CFO John David Rainey.
Murphy USA reported drawing more first-time shoppers and lapsed customers, according to CEO Mindy West.
Average U.S. regular gas price on Thursday was $4.39 per gallon, up $1.22 from a year ago (AAA).
Federal data showed spending at gas stations in April surged 21% compared to last year.
Oil tankers have been blocked from passing through the Strait of Hormuz near Iran, threatening global fuel shipments.
A top ExxonMobil executive said prices could jump by an “order of magnitude” in weeks due to low oil reserves.
Executives at Walmart and Costco stated that higher gas prices will lead to higher prices on store shelves.
Open questions
The article does not specify how much further gas prices might rise or how long the Strait of Hormuz blockage might last.
Key figures
Ron Vachris, CEO of Costco
Gary Millerchip, finance chief of Costco
John David Rainey, CFO of Walmart
Mindy West, CEO of Murphy USA
Unnamed top ExxonMobil executive
Sources: NPR
