Gas lines 'berserk' in Frederick

It's not a mirage.

The Costco gas price sign really reads "Unleaded -- $2.69."

The wholesaler's Monday holiday price was $2.92, dropping 23 cents in one day.

"Lines have been berserk," said Pete Barney, Costco assistant manager.

Located at 10 E. Walser Drive, the store's members have exclusive access to "the lowest gas prices in Frederick," according to General Manager Tony

Ciccarello.

The Columbus Day holiday threw the gas station into a frenzy, bringing in more than 2,000 cars in one day. "The biggest thing is maintaining order," Barney said.

"People don't mind waiting" Ciccarello said. It takes about three minutes to cycle two cars through the pumps, creating a 10- to 15-minute turnaround for those in line.

"How can you afford to sell (gas) so cheap?" was the most frequent question Ciccarello received while working traffic control at the pumps Monday.

The answer? Costco operates on a slimmer margin than most retailers, Barney said. "We operate on 10 percent, usually, while most retailers commonly use 50 to 100 percent."

The wholesaler's smaller margins, plus the falling price of barrels of oil, down to around $80 in recent days, mean lower prices for Costco members.

"I remember when gas was 20 or 30 cents a gallon," Denny Bayer said Tuesday while waiting in line at the pump.

"To fill up my truck, it'd be over $100," said Barbara Bayer, in a car with her husband. "We don't even drive the truck anymore. So, $2.69 is way good."

Costco did suffer from a short loss of regular gas, but took care of it by offering the premium gas at the regular price during the 10 minutes it waited for a gas tanker to arrive with more fuel.

"We're selling at higher than normal volumes," Ciccarello said. "Now we're fully up to speed."

People are stopping at the pumps to fill up and to just top off, according to Costco management.

"It's across the board," Barney said. "A woman came yesterday and bought two gallons."

As of Tuesday night, six other gas stations had gas under $3 in Frederick:

A1 Mart at 649 Himes Ave., Southern States at 5841 Buckeystown Pike, Freestate at 1180 W. Patrick St., Sunoco at 1200 W. Patrick St., Chevron at 1395B W. Patrick St. and Exxon at 1380 W. Patrick St.

A1 Mart owner Sharad Doshi said the $2.99 price has had a positive effect, and the store has experienced more customers at pumps lately.

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