A MAJOR announcement will be made by the council and Costco today at 10am.
It comes after a development application was lodged on August 31 over a site at Bundamba.
The council is yet to make a decision on the application.
RETAIL giant Costco has hit a new milestone in its plans to open a new warehouse in Ipswich that will create hundreds of jobs and likely drive down fuel prices.
A development application has been lodged over a parcel of land at Bundamba where Costco will develop 6.5ha of the 20.6 ha site into a massive precinct, off Ashburn Rd, complete with an on-site petrol station.
The new precinct is expected to create jobs for 250 permanent staff. That doesn't include work that will flow from construction.
The Ipswich store will be the US bulk selling retail giant's second in Queensland with the first at North Lakes.
Ipswich City Council will officially announce the project in more detail tomorrow, alongside Costco Wholesale Australia Managing Director Patrick Noone.
It follows years of speculation, enthusiasm and friendly competition from various south-east Queensland councils, all vying for Costco's business.
The 'Costco effect'
PETROL prices are likely to drop in Ipswich once Costco opens, despite the city already being home to some of the cheapest bowser prices in south east Queensland.
The "Costco effect" has been proven at North Lakes where petrol prices plummeted when the wholesale giant moved in.
RACQ's Renee Smith told the QT earlier this year service stations nearby were forced to drop their prices to compete meaning motorists didn't need to be a Costco member to benefit.
"We saw service stations, particularly in North Lakes and Mango Hill, drop their prices which was great news for locals," Ms Smith said.
"It had the biggest impact at the peak of the petrol cycle, so that when prices started going up, people living near the Costco didn't feel that pinch because everyone in the area still had to compete with Costco's prices.
"Lately Ipswich has had some of the cheapest petrol prices in Queensland, it really has been the place to fill up.
"If Costco moved in, we'd likely see petrol prices in the neighbouring suburbs dropping their prices to compete."
Where will Costco be based