US shoppers are signing up for Costco memberships to buy cheaper gas

• US consumers are taking out Costco memberships so they can buy cheaper gas.
• Gas prices are up as much as 77 cents from last month.

Some US shoppers are signing up for Costco memberships in order to buy cheaper gas.

Over the past few days, dozens of consumers have touted the benefits of a Costco membership on Twitter, saying that it's a more affordable place to buy gas as prices continue to soar in the US.

These shoppers say that despite the annual membership fee, which starts at $60 a year, they will still save money.

Koshin Jimcali is one example. He told Insider that he took out a Costco membership on Sunday.

"If gas prices stay where they are, I should save $430 roughly over the next year, and more if prices go up. Definitely worth the $60 investment for membership," he said.

Though gas prices in the US have been rising for some time, the recent spike is driven by the Russia-Ukraine conflict and Western sanctions imposed on Russia that made it harder for the country to sell its oil. Russia is one of the world's largest oil producers and the cost of crude oil is closely tied to that of gas.

As of Thursday, the average cost for a gallon of gas in the US was $4.29, according to AAA Gas Prices, a 77 cent increase from a month before.

Meanwhile, gas at warehouse clubs such as Costco can be as much as 30 cents less than regular gas stations, according to IHS Markit's Oil Price Information Service.

Insider reached out to Costco for more details on whether it had seen an uptick in membership sales in recent weeks. A spokesperson was not immediately available to comment.

Still, the appeal of cheap warehouse club gas has meant that some other members are finding it hard to fill up because of long lines.

One shopper, Pam Rubitsky, told Insider earlier this month that when she arrived at Sam's Club in Citrus Heights, California, at 5.50 a.m. local time, there were at least five cars in line at each of the 10 pumps available. By the time she left, the line was even longer, she said.

She said it was worth the wait, however. On that day Sam's Club gas cost $4.92 per gallon. Meanwhile, her local regular gas station was charging $5.89, she said.