Skip to content

Costco gas station with 24 pumps to open next summer

Analyst expects station will lower fuel prices somewhat, but not enough to drive nearby stations out of business
091121_HU_Costco 4 crop

In a move expected to drive down local gasoline prices, a 24-pump Costco gas station is scheduled to break ground in the spring and be operational by next summer.

“The gas station has been a popular offer with our members whenever we had the opportunity,” company spokesperson Martin Groleau told Sudbury.com.

While he wasn’t aware of the specific location, he said it would be built in close proximity to the existing store in the Silver Hills development off of The Kingsway.

This spells good news for local consumers, GasBuddy.com senior petroleum analyst Patrick De Haan told Sudbury.com. 

“It’s always exciting seeing a company that is priced aggressively come into an area,” he said, adding that with high gas prices of late make the announcement timely.

“I have not seen a case where a new Costco comes in and does not dramatically undercut nearby stations. … Over time, in many areas and many instances, Costco remains very aggressive compared to its competition.”

The introduction of Costco gas pumps has been bandied about for a while, Ward 11 Coun. Bill Leduc said, adding that there were even prior rumblings about the possibility of Costco relocating to the south end to accommodate the expansion. 

“Working with our city staff and obviously with the landlord of that property they were able to navigate through this and develop the 24 pumps,” Leduc said. 

“This just goes to show that they’re here for quite some time with a significant investment for Ward 11 and the City of Greater Sudbury.”

Costco was the original feather in the cap of the Silver Hills development, which Leduc said naysayers initially criticized as doomed to fail but has grown greatly in recent years. 

The Costco gas station will contribute to this forward momentum, he said. 

“With the other Costcos in southern Ontario that have gas bars we’ve seen an increase in business. … It’s a great development for our ward.”

Although Costco typically undercuts competitors’ prices, De Haan said it shouldn’t be aggressive enough to drive anyone out of business, in part because of the requirement that customers carry a Costco membership. Also, he said, they’re known for having long lines due to their low prices. 

“There’s enough friction in the process that it’s not easy for everyone to get those low prices and that keeps other stations in business,” he said. “I think every time we’ve seen a Costco it’s been good news for consumers.”

The Costco expansion joins a series of developments in Ward 11, Leduc said, pointing to an upcoming grocery store in the Silver Hills development as another example. A property has been rezoned to accommodate the store, which has yet to be publicly named. 

A major residential development is also on the horizon in the southern part of the ward, and a bit east down The Kingsway is the Kingsway Entertainment District, a municipal arena, casino and hotel development that’s expected to break ground this month and open by 2024. Area property owners are already planning expansions and new businesses in the area to accommodate the influx of people to this area of the city. 

Tyler Clarke covers city hall and political affairs for Sudbury.com.