Membership-Only Gas Stations Legal In NJ: Reports

NEW JERSEY - New Jerseyans will soon have to show a Costco membership card to purchase gasoline at Costco fuel pumps in the state, and the move is entirely legal, according to the New Jersey Division of Consumer Affairs.

Starting July 5, store membership will be required for customers to buy gas at the pump. Discount wholesalers like Costco, Sam's Club and BJ's have reported lengthy refueling lines since gasoline prices began spiking earlier this year. The DCA, part of the state Attorney General’s Office, told multiple outlets that members-only gasoline sales are not in violation of any consumer protection laws in the state.

"Meanwhile, the Division of Consumer Affairs encourages New Jersey residents to contact us if they become aware of or may be subject to price gouging, and file a complaint. The Division of Consumer Affairs is committed to standing up for New Jersey's consumers in the face of unfair and deceptive acts and practices,” agency spokesman Steve Barnes told NJ 101.5.

Annual Costco memberships start at $60. Sam’s Club memberships start at $45 with optional add-ons. BJ’s memberships typically start at $55, but are going for $25 with a discount offer.

Warehouse stores attempted a similar membership requirement for gas purchase in 2004, but the effort was halted by the state when it found the policy in violation of NJ fuel sale laws. It wasn’t immediately clear how the Attorney General’s Office came to a different conclusion this time around.

The news comes as gas prices in the state continue to swell at nearly $5 per gallon. The skyrocketing increase has been attributed to high demand for summer travel and worldwide oil trade turbulence. Read more: NJ Gas Hits $5: 3 Reasons Why Prices Keep Rising

The average cost for a regular gallon of gas in New Jersey stood at $4.86 on Friday, according to AAA. Diesel prices average about $6 per gallon, with Somerset, Morris, Mercer and Bergen reporting the highest prices in the state. Burlington, Warren, Gloucester, Camden, Cumberland and Atlantic currently report the lowest.