NJ Costco Stores To Require Membership For Gas Purchases

NEW JERSEY - New Jerseyans will soon have to show a Costco membership card to purchase gasoline at Costco fuel pumps in the state, according to signs posted at several locations.

Starting July 5, store membership will be required for customers to buy gas at the pump. Discount wholesalers like Costco and Sam's Club and BJ's have reported lengthy refueling lines since gasoline prices began spiking earlier this year.

However, it's not clear whether Costco's new policy is entirely legal. 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.

The news comes as gas prices in the state surge to a record $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 $4.99 as of Monday, according to AAA. Five counties averaged more than $5 — Somerset ($5.08), Essex ($5.04), Cape May ($5.03), Morris and Mercer (both $5.02).

Diesel prices averaged $6.12 per gallon in New Jersey as of Monday.

With reporting by Josh Bakan.