Costco gas station – and possibly lower prices -- coming to Sudbury

Sudbury -

Costco Canada is building a 24-pump gas station in Greater Sudbury, and at least one analyst says that could be good news for consumers.

Costco spokesperson Martin Groleau said shovels are expected to be in the ground this spring. Groleau said diesel will not be available and would not confirm the location of the gas station.

But he said it would be in close proximity to the store. The hours of operation haven't been determined yet for the station, but it will not be open 24 hours a day.

Patrick De Haan, head of petroleum analysis for Gas Buddy (https://www.gasbuddy.com/), said the Costco gas station could mean lower gas prices in the community.

“Costco could be a disrupter," De Haan said. "There's a lack of price leadership (in Sudbury). There’s maybe a lack of a diversity of stations and it costs motorists more. Stations generally hold their prices higher in those types of instances.

"The good news is that in many places where Costco has opened up -- looking today for example in Regina, Sask., price at the Costco station is about 5 to 10 cents a litre lower on average than the competition," he added.

"So this certainly should be a very big piece to help Canadians save money at the pumps.”

De Haan said while this may seem like a bad thing for the competing gas stations, it could be a positive thing in the long term.

“Costco generally has some of the lowest prices, but there are long lines and that’s part of the reason why gas stations near Costco probably don’t have to worry about losing too much business," he said.

"No. 1, because Costco, like you mentioned, requires a membership, not everyone can go to Costco and fill up. And oftentimes there will be long lines -- especially on opening -- so keep that in mind it's going to be very busy.”

While construction is expected to begin in spring, Groleau didn't say when construction is expected to be complete. The Sudbury station will be Costco’s 21st store to offer gas in Ontario.