Costco quietly boosts gas rewards for cardholders to 5% at warehouse pumps
Costco has quietly raised the Costco Anywhere Visa® Card by Citi reward to 5% cash back on fuel bought at Costco gas stations, up from 4%, applying to the first $7,000 of combined annual gas and EV charging purchases.
- Costco Anywhere Visa® Card by Citi now pays 5% cash back on gas purchased at Costco gas stations (up from 4%); issuer materials also reflect the change via Citi.
- Eligible gas purchases outside Costco and EV charging earn 4% cash back up to the combined $7,000 annual cap (Citi).
- Both the 5% and 4% rates apply only to the first $7,000 in combined annual purchases on gas and EV charging; after that, rewards drop to 1% (NerdWallet).
- Rewards are issued annually as a certificate after the February billing cycle and can be redeemed in-warehouse or via direct deposit for larger amounts (NerdWallet).
What changed — and what it means for cardholders
What changed: Costco raised the cash back rate for purchases made at Costco-branded pumps to 5% cash back, a one-point increase from the prior 4% rate. This higher rate applies only to fuel purchased on Costco property and is limited to the first $7,000 in combined annual spending on gas and EV charging.
What it means: Cardholders who primarily fuel at Costco can now earn up to $350 in annual rewards from gas/EV purchases (5% of $7,000), compared with the previous maximum of $280. After the $7,000 cap is reached, all additional gas and EV purchases earn just 1% for the remainder of the year.
Where the change applies — and where it doesn’t
The 5% rate applies only to gas bought at Costco gas stations. EV charging — whether at Costco or elsewhere — remains grouped with other eligible gas purchases and earns 4% up to the $7,000 cap. In short:
- Costco pump gas: 5% up to $7,000.
- Non-Costco gas and EV charging: 4% up to $7,000.
- After $7,000: 1% for remaining year.
Other card benefits remain unchanged
Existing reward tiers are intact:
- 3% cash back on restaurants and eligible travel purchases, including Costco Travel.
- 2% cash back on Costco and Costco.com purchases.
- 1% cash back on all other purchases.
The card carries no annual fee from Citi, but an active Costco membership (starting at $65 per year) is required to use it (NerdWallet).
How rewards are issued and practical details
Rewards from the Costco Anywhere Visa Card are issued once a year as a reward certificate after the February billing cycle. Members can redeem the certificate for cash or merchandise at Costco warehouse locations. For reward amounts of $500 or more, Citi offers direct deposit as a redemption option. Note: the rewards certificate cannot be used online at Costco.com.
The card lacks foreign transaction fees, but it does not advertise the same breadth of travel protections as many premium travel cards. Cardholders who travel internationally should evaluate card choice for overseas protection and benefits (Fox Business).
Why the change may have been made — and how Costco handled it
Analysts and personal finance outlets describe the change as a quiet loyalty play. Costco — with one of the highest membership renewal rates in retail and more than 80 million paid members — can improve perceived member value through targeted rewards without adjusting membership pricing. The adjustment appears to have been made without a formal public announcement; reporting by Fox Business noted the quiet implementation, and Citi’s public materials reflect the updated 5%/4% structure.
NerdWallet and other personal finance sites called the change competitive for gas-heavy spenders but recommended pairing the Costco card with a flat-rate cash back card for non-bonus spending or once the gas cap is reached.
What cardholders should watch for
- Track the $7,000 cap. The combined limit includes both gas and EV charging; once reached, rewards fall to 1% for the rest of the year (Citi).
- Confirm pump eligibility. Only gas bought at Costco-branded pumps qualifies for 5%.
- Consider card pairing. After the cap is hit, a flat-rate cash back card may yield more value; NerdWallet suggests pairing strategies.
Sources and verification
This report draws on issuer materials and coverage from multiple outlets:
Implications for Sonoma, California
Economic and household budgets: Sonoma County drivers who frequently fuel at Costco can see modest but tangible savings. The bump from 4% to 5% raises the potential annual gas/EV rebate to $350 (5% of $7,000) — $70 more than under the prior structure — which can matter for families and commuters traveling between towns or to Marin and Santa Rosa.
Local gas pricing and pump access
Costco’s competitive pump pricing already draws many Sonoma shoppers; the extra percentage back further incentivizes fueling at Costco. However, drivers should weigh pump wait times and travel time — a long trip to reach a Costco pump can offset the reward advantage.
EV drivers in Sonoma
EV adoption is growing locally, but the 5% boost does not apply to EV charging at Costco. EV charging remains eligible for 4% up to the combined $7,000 cap. Sonoma EV drivers should note this when estimating annual savings from public or Costco charging sites.
Political and community perspective
From a locally moderate viewpoint, the change is a business decision that benefits frequent Costco users and reinforces membership value without altering membership fees. Consumer advocates focus mainly on price transparency and access; this reward tweak shifts value toward membership-based savings rather than changing pump prices.
Practical tips for Sonoma residents
- Track year-to-date gas and EV charging totals to monitor proximity to the $7,000 cap.
- Compare driving time, pump wait times, and net savings before deciding whether a Costco fill-up is worth it.
- Consider pairing the Costco card with a flat-rate cash back card for non-bonus spending or after hitting the cap (NerdWallet).
For Sonoma members, the quiet Costco gas rewards increase offers a modest but tangible boost to household savings if used intentionally; understand the 5% pump rule, the $7,000 cap, and the annual certificate payout to maximize value.
