Costco quietly lifts gas rewards to 5% for cardholders, boosting annual cap to $350
Costco has increased the cash back for Costco Anywhere Visa Card holders to 5% on fuel purchased at Costco gas stations, raising the annual gas rewards cap to $350 and immediately boosting potential member savings.
- Costco Anywhere Visa Card now pays 5% cash back on fuel purchased at Costco gas stations.
- Other eligible gas purchases and electric vehicle (EV) charging earn 4% cash back.
- Both rates apply only to the first $7,000 in combined annual spending on gas and EV charging; after that, the rate falls to 1%.
- The increased cap raises the maximum annual gas rewards to $350 (up from $280).
Key information
Below are the details members should know. The facts and sources are preserved and linked for reference.
- Fox Business first reported the change to the card’s gas rewards.
- Citi documents the tiered gas and EV charging rewards and the $7,000 combined cap.
- NerdWallet explains redemption timing and certificate payout options.
What changed and who it helps
Costco raised the top tier for fuel purchased at Costco-branded pumps from 4% to 5%. That means:
- 5% cash back at Costco gas stations (new top rate).
- 4% cash back for eligible gas elsewhere and for EV charging, under the same $7,000 annual cap.
- This rollout appears to be quiet — implemented with limited public fanfare and noted by outlets tracking card changes.
“Members who regularly fill at Costco pumps stand to gain the most from this upgrade.”
How the rewards work
The Citi-issued Costco Anywhere Visa Card uses a tiered structure:
- 5% cash back on purchases of gas at Costco gas stations (new rate). Details
- 4% cash back on eligible gas purchases outside Costco and on EV charging. More
- 3% cash back on restaurants and eligible travel, including Costco Travel.
- 2% cash back on all purchases at Costco and Costco.com.
- 1% cash back on all other purchases.
All gas and EV charging rewards are capped at the first $7,000 in combined annual spending. After that point, fuel rewards drop to 1% for the remainder of the calendar year. Under the new 5% rate, a cardholder who reaches $7,000 in qualifying fuel purchases would collect $350 instead of the prior $280.
Redemption and timing
Rewards are issued once per year as a certificate redeemable for cash or merchandise at Costco warehouses. Since 2022, members earning certificates worth $500+ may opt for direct deposit. Members should note the usual timing — certificates are typically sent after the February billing cycle — so plan around when funds become available. Redemption details
Other card benefits and requirements
The card carries no annual fee from Citi, but an active Costco membership is required to receive and use the card. Cardholders also enjoy travel protections and no foreign transaction fees, benefits valuable to members who use the card beyond fuel purchases.
Why Costco may have made the change
Analysts view the bump as a strategic loyalty move: increasing rewards at warehouse pumps encourages members to apply for and use the co-branded card, helping Costco protect its high membership renewal rates and capture more spending at its locations.
Practical tips for members
- Plan fills at Costco pumps when possible. Regular users benefit most from the 5% rate. Check coverage
- Track combined gas and EV charging spending. The $7,000 cap is combined and can be reached sooner with heavy EV charging.
- Note the annual payout schedule. If you prefer cash earlier, plan purchases around the certificate timing. Redemption timing
- Compare total value. Non-members or those far from Costco may find other cards with flat-rate rewards more useful.
What this means for competition
By concentrating its best fuel rate at Costco pumps, the company tightens its value proposition versus other fuel- and travel-focused cards, nudging members to choose the branded card and to refuel at warehouses rather than at competing stations.
Implications for San Luis Obispo, California
Economic impact
San Luis Obispo County drivers who already shop at Costco may see noticeable annual savings, especially households that fill frequently. Competing local stations could lose small volumes of traffic to Costco pumps as members chase the higher reward.
Political and policy context
Local leaders tracking cost-of-living pressures may view this as a modest benefit for household budgets. The change has no direct effect on tax policy or fuel regulation but could factor into procurement or fleet fueling decisions.
Social effects
Extra pump savings can free modest funds for families. However, low-income residents without memberships will not directly benefit unless they enroll, which requires paying the membership fee — a barrier for some.
Cultural relevance
In communities that value frugality and convenience, like San Luis Obispo, the enhanced rewards may further solidify Costco’s role as a central shopping and fueling destination.
Practical local advice
- Check nearby Costco pump hours — not all warehouses have 24-hour pumps. Verify locations
- Compare total cost with local independent stations and member programs before changing habits.
- Weigh the membership fee against expected annual savings from fuel and other benefits. Further analysis
