Image Source: Mike Mozart, Flickr

Walmart (WMT) is expanding into the fuel business, planning to open over 45 gas stations across the U.S. this year—a move that could intensify competition with Costco (COST) and other warehouse clubs, according to Men's Journal.

“As EVs remain a long-term play, gas is still king,” said Joe Camberato, CEO of NationalBusinessCapital.com. “The switch to electric vehicles isn’t happening overnight, and retailers know there’s money to be made from traditional fuel for years to come.”

“Walmart’s fuel expansion signals an effort to rival Costco’s highly successful gas business, which made up around 12% of its total sales in 2024,” said Usha Haley of Wichita State University. Unlike Costco’s members-only model, Walmart’s pumps are open to all.

The Men's Journal report says that Costco is responding by extending fuel station hours—most now open until 10 p.m.—to strengthen member loyalty as EV adoption remains slow.

Retailers are turning to fuel as a steady income source amid inflation, tariffs, and supply chain strain. Walmart has even warned tariffs on Chinese goods could raise prices, making cheap gas a key draw.

“The rise of EVs will eventually change the game,” said Manish Choudhary of SymphonyAI. “But for now, these retailers are competing for a bigger slice of the fuel pie, and Walmart’s latest move is a clear signal of intent.”

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