Major US retailers like Walmart and Costco are rapidly expanding their fuel operations, betting that traditional gas remains a lucrative draw even as the electric vehicle (EV) market grows.
Walmart plans to open more than 45 new gas stations this year, bringing its total to over 450 across 34 states. These stations will serve locations without a Murphy USA partner and offer discounted prices to Walmart+ members.
“Our one-stop shops offer low prices at the pumps, and Walmart+ members save up to 10 cents per gallon,” said Walmart spokesperson Amanda Cantu.
Costco, meanwhile, is extending hours at its member-only fuel centers, with many locations now staying open until 10 p.m. “Generally, our stations are now staying open an hour later than they did previously,” said Costco CEO Rob Vachris.
Even Dollar General has joined the trend, expanding its fuel pilot program to over 40 stores, mainly in the South.
Experts say the expansion into gas reflects both short- and long-term strategic thinking. “The world still runs on gas, not EVs,” said Joe Camberato, CEO of NationalBusinessCapital.com.
“There’s still plenty of money to be made in the fuel business. Change is coming, but not nearly as fast as people predicted.”
Retail strategist Usha Haley noted that Walmart’s move mirrors Costco’s highly profitable fuel business, which made up roughly 12% of its sales in 2024.
However, unlike Costco, Walmart’s gas stations are open to all consumers, not just members, potentially broadening its reach. Haley also pointed out that with rising tariffs, gas sales could help Walmart offset projected losses.
Manish Choudhary, CEO of SymphonyAI, added that gas remains a core product for most consumers. “It makes sense even for non-traditional fuel retailers to invest in it,” he said. “Gas stations offer a chance to build loyalty and drive traffic.”
Looking ahead, retailers are also eyeing EV infrastructure as a future opportunity. EV charging takes significantly longer than fueling, giving retailers more time to engage shoppers. “That extended downtime is a golden opportunity for stores to attract foot traffic and increase spend,” Choudhary said.
While the expansion of fuel stations may seem retro, it’s ultimately about future-proofing, meeting current consumer needs while laying the groundwork for a time when EVs dominate the road.
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