The new service station opened at Costco’s North Lakes warehouse just over a month ago, selling unleaded petrol for up to seven cents per litre less than the average price in nearby Brisbane.
RACQ’s Renee Smith said this had prompted other fuel outlets in the area to lower their prices in order to compete with Costco.
“Unleaded petrol at several retailers in North Lakes has been consistently cheaper than Brisbane’s average price since Costco’s arrival in the market,” Ms Smith said.
“While this is great news for those motorists living in and around North Lakes, Costco’s low prices haven’t and won’t impact the nearby Brisbane fuel market.”
Despite the win for consumers as Costco gains a foothold in the fuel market, Ms Smith said the RACQ is concerned the US retail giant may be absorbing losses on its fuel in order to drive smaller independent operators out of the market.
Ms Smith said Queensland motorists should check RACQ’s website to see if cheap fuel was available in their area.
The North Lakes location is Costco’s second fuel outlet in Australia, with the Casula warehouse in South-Western Sydney being the first.
Costco opened its first warehouse at Docklands in Melbourne in 2009, followed by stores at Auburn in Sydney, Majura Park in Canberra and a second Melbourne outlet in Ringwood, but none of these locations plan to offer fuel to customers at this stage.
A new store earmarked for Marsden Park in Sydney’s north-west is expected to be the third fuel outlet for Costco.