Costco quietly lifts gas rewards for its branded credit card to 5% at warehouse pumps
Costco has increased the Anywhere Visa Card gas reward to 5% at Costco-operated pumps, up from 4%, letting cardholders earn up to $350 per year on the first $7,000 in combined gas and EV charging purchases.
Key takeaways
- Top-tier gas reward: 5% cash back at Costco gas pumps (previously 4%). Source: Fox Business and Citi.
- Other gas & EV charging: 4% back on eligible gas purchases outside Costco locations and on EV charging. Source: Fox Business; Citi.
- Annual cap: 5% and 4% apply only to the first $7,000 in combined annual gas and EV charging spending; thereafter the rate falls to 1%. Source: Fox Business; Citi.
- Maximum cash back: Up to $350 on qualifying gas under the new 5% top rate (previously $280 at 4%). Source: Fox Business.
Main content
What changed, and how it works
Costco has quietly raised the top-tier gas reward on the co-branded Costco Anywhere Visa Card issued by Citi from 4% to 5% for purchases made at Costco-operated fuel pumps. Purchases of gas at other retailers and EV charging now qualify for 4% back. Both the 5% and 4% rates apply only to the first $7,000 in combined annual spending on gas and EV charging; afterward the cash back rate falls to 1% for the remainder of the year. (Sources: Fox Business; Citi.)
The math
At 5% on $7,000, a member can earn up to $350 annually. Under the prior 4% structure the maximum was $280. After the $7,000 cap is reached, additional qualifying spending earns only 1%, which substantially reduces incremental value for heavy fuel spenders.
“Rewards are issued annually as a certificate, typically after the February billing cycle.” — card terms from Citi and reporting by Fox Business.
Other card benefits and limits
- 3% back on restaurants and eligible travel, including Costco Travel.
- 2% back on all Costco and Costco.com purchases.
- 1% back on all other purchases.
- No annual fee for the card itself, but an active Costco membership is required.
- No foreign transaction fees and standard Citi travel protections.
Rewards are paid as an annual certificate that members can redeem for cash or merchandise at Costco warehouses, typically after the February billing period. Because rewards are not issued as monthly statement credits, timing and liquidity differ from cards that post monthly cash back. (Sources: Fox Business; Citi.)
Why the change matters — and why Costco might be doing it
The one-percentage-point increase is strategic. A 5% top gas reward creates a clearer incentive to use the Costco card at the pump and to favor Costco gas stations when convenient. Analysts say the move likely aims to drive card adoption, increase card-linked spending inside Costco’s ecosystem, and retain memberships by offering visible, easily explained savings. The change benefits both Costco and Citi through interchange income and consumer data.
Practical examples for shoppers
- If you spend $2,000 a year on gas at Costco pumps, 5% returns $100 in cash back.
- If you spend $7,000 a year on combined gas and EV charging at qualifying rates, the new maximum is $350, which is $70 more than under the prior 4% top rate.
- After $7,000 in qualifying spending, additional fuel purchases earn only 1%; high spenders should consider splitting purchases across cards.
Watch the fine print
The 5% reward is limited to Costco-operated fuel pumps and does not apply to every gas station. Gas and EV charging track toward the same $7,000 cap. Rewards are delivered annually as certificates, not monthly credits, affecting cash-flow flexibility. The card is issued by Citi and requires an active Costco membership. Always verify eligibility and recent terms on Citi’s site before relying on the benefit. (Sources: Citi; Fox Business.)
Implications for San Diego, California
Economic impact
San Diego’s multiple Costco warehouses and busy pumps could see a shift in shopper behavior when price differences are small. For regular commuters and long-distance drivers, the extra percentage point can increase household savings and shift some local fuel volume toward Costco stations.
Political consequences
This is a private-sector pricing and loyalty move rather than a policy change, but local officials monitoring consumer costs might note how corporate reward programs influence purchasing patterns. Public debate on fuel costs will still center on pump prices and taxes, though loyalty programs shape consumer choices too.
Social effects
The change favors drivers who use Costco gas. San Diego’s mix of commuting patterns means some residents gain more value than others. EV owners may receive less benefit because EV charging is grouped under the 4% tier, not the 5% pump rate.
Cultural relevance
Costco is woven into Southern California retail culture. Increasing card value reinforces Costco’s membership-club positioning — an appealing message in high-cost regions where modest, reliable savings matter to household budgets.
Practical applications for San Diegans
- Check where you pump to capture the 5% rate if you already use the co-branded card.
- Track the $7,000 cap; once reached, the 1% rate makes alternative cards worth considering.
- EV owners should review how EV charging is treated under card terms to assess real value.
Sources and reporting notes
This article draws on reporting and public card terms from Fox Business and the Citi card benefit page for full details.
