South Jersey Costco not turning public away from gas pumps

MOUNT LAUREL - No membership required.

Any motorist can still get a fill-up of warehouse-priced gas at the Mount Laurel Costco despite a company policy that started Tuesday limiting sales to members.

Signs announcing the plan to limit gas delivery to club members as of July 5 had been removed from the gas pumps in Mount Laurel sometime between Friday and Sunday after the township demanded the company reconsider its plan and warned of fines of up to $2,000 a day if Costco enforced its restrictions on public purchases.

Township solicitor George Morris said the township hand delivered a warning letter he wrote to the manager of the Costco Wholesale store located behind the gas pumps at the Centerton Square Shopping Center off Route 38 .

"We don't care what Costco is doing at other stations in New Jersey, but we told the company it's bound by our 2013 zoning board approval for a use variance that was adopted by resolution to allow Costco to add a gas station,” Morris explained.

A Costco sign posted in June at its gas station pumps in Mount Laurel announces a new policy to serve only its active  card members
A Costco sign posted in June at its gas station pumps in Mount Laurel announces a new policy to serve only its active card members

EARLIER:New Jersey says its legal for COSTCO to restrict sales of gasoline at its stations

"For the zoning board to grant an exception for a use variance you have to show the benefits to the community. Costco’s hearing testimony was crystal clear that it would allow sales to all customers - not just Costco members.”

Morris said township officials were aware of the company’s plan from news reports and also from several complaints from residents concerned about the intended and announced policy to limit access to fueling station to Costco members this week.

“Costco is hereby placed on notice that any restrictions on who may purchase gas would directly contradict the representations made to the Zoning Board and violate the variance approval,” the letter read.

Morris also promised to file daily zoning violations and fines of up to a maximum penalty of $2,000 against Costco if the store prohibits the sale of fuel to non-members.

On Tuesday, a Courier-Post/Burlington County Times reporter in South Jersey who is not a Costco member was able to buy fuel without being asked for a membership card. A Costco attendant converted the reporter’s cash into a gift card and used that to complete the purchase.

The reversal was welcome news to non-Costco card customers, including Ashley Washington of Burlington Township and Carol Saraullo of Mount Laurel. Both stopped by the Costco station at Centerton Square on Wednesday afternoon.

"I am grateful we can still get gas. They have very quick service and they have great prices," said Washington, who got a quick $10 worth of regular unleaded at the lowest price she has seen in weeks — $4.59 per gallon.

Morris, a member of the Parker McCay law firm of Mount Laurel, said he opted to send the letter to the store after failed attempts to locate a Costco lawyer at the corporate office because the lawyer handling the zoning case said he was no longer representing the company.

The USA Today Network newspapers in South Jersey also have been unsuccessful in attempts to reach the corporate communications office for comment since June.

The policy had been under public scrutiny since it was announced last month. A previous attempt in 2004 to curb public fueling at Costco and other warehouse clubs, fell apart amid reports the practice was illegal in the Garden State.

Last week, the New Jersey Division of Consumer Affairs said there was no law prohibiting clubs from restricting gasoline sales at its stations statewide.

This article originally appeared on Cherry Hill Courier-Post: Costco can’t limit gas fill-ups at Mount Laurel NJ store