Gas For All: NJ Could Force Costco To Sell Gas To Everyone, Not Just Members

NEW JERSEY — After many Costco members were flocking to their New Jersey stores this summer to fill up on cheap gas, state lawmakers may now allow non-members to purchase gas at the retail chain as well.

State Senators Richard Codey, D-Essex, and Vin Gopal, D-Monmouth, have both introduced bills (S3000 and S3029) that would require retail membership clubs, like Costco, to allow anyone to purchase gasoline at their pumps — not just paid members.

Even as gas prices have begun to drop, these measures come as a way to make gas more accessible for NJ residents, particularly those who have to commute far distances to work.

Back in July, Costco's two gas stations in Edison and North Brunswick topped GasBuddy.com's list of stations with the cheapest prices in the state at the time, selling for about $4.40 per gallon.

But at the time, those purchasing gas at Costco were required to present their membership card. An annual membership at Costco costs $60.

Read more: Costco's Members-Only Gas Policy Starts Tuesday In NJ

Although gas prices in New Jersey have lowered to an average of $3.69 per gallon, according to AAA, the price is still significantly higher than it was a year ago at around $3.22 per gallon.

“I do believe gas is a public commodity, just like food and energy,” Gopal said. “I don’t believe there should be membership costs to get things generally in the public good.”

According to NJ.com, Gopal is "not telling businesses what to charge for gas" but that "it shouldn't be done as a club."

Costco tried to attempt a similar membership requirement for gas purchase in 2004, as it did this past July, but the effort was effort was halted by the state when it found the policy in violation of NJ fuel sale laws.

In June, the DCA, part of the state Attorney General’s Office, told multiple news outlets that members-only gasoline sales are not in violation of any consumer protection laws in the state. It wasn’t immediately clear how the Attorney General’s Office came to a different conclusion this time around. A state Treasury Department spokeswoman said in June that Costco is in the clear as long as motor fuels taxes are paid, NJ.com reported.

The recent bills argue that "if wholesale retailers selling discounted goods through membership warehouses and online limit the sale of motor fuel to only their members, the public interest will be harmed by the decrease in availability of gasoline stations."

If these bills are passed, any club that restricts gas to members only will be fined up to $1,000 for the first offense, $5,000 for the second and $10,000 for each subsequent offense.

Only one of the measures needs to pass to become law, according to NJ.com. Both houses of the state Legislature — the Senate and Assembly — would need to approve the bill before the governor could decide whether to sign it into law.