Costco quietly raises gas cash back to 5% at warehouse pumps for cardholders
Costco quietly boosted rewards for its Citi-issued Costco Anywhere Visa Card, raising cash back to 5% at in-warehouse pumps and 4% on other gas and EV charging up to a combined $7,000 annual cap for members.
Key takeaways
- 5% back at Costco pumps: Costco Anywhere Visa Card holders now get 5% cash back at Costco gas pumps (up from 4%). Citi; Fox Business
- 4% on other gas and EV charging: Other eligible gas purchases and EV charging earn 4% cash back, up to a combined $7,000 per calendar year. Citi; Fox Business
- After the cap: Once the combined $7,000 cap is reached, gas and EV charging rewards fall to 1% for the remainder of the year. Citi
- Maximum annual cash back: Under the new structure members can earn up to $350 annually in gas cash back, up from the previous $280 maximum. Fox Business; MoneyTalksNews
What changed and how it works
Costco raised the reward rate for fuel purchased at its own pumps to 5% for holders of the Costco Anywhere Visa Card, issued by Citi. This increase is targeted and limited: it applies only to gasoline purchased at Costco gas stations; EV charging at Costco locations is excluded from the 5% rate and instead earns 4% under the combined cap.
The combined $7,000 cap and its effect
A key element is the combined $7,000 annual cap that covers both the 5% in-warehouse purchases and the 4% on other eligible gas and EV charging. Under this structure, a member who reaches $7,000 in qualifying spend would collect up to $350 in cash back — an increase from the prior maximum of $280 when the top rate was 4% only. Confirmations and terms appear on Citi’s information page.
Other rewards and redemption
All other rewards remain unchanged: 3% on restaurants and eligible travel (including Costco Travel), 2% on Costco and Costco.com purchases, and 1% on other purchases. Cash-back credits are issued annually as a certificate after Citi’s February billing cycle; members redeem the certificate for cash or merchandise at Costco warehouses. Fox Business; Citi
Eligibility, fees and protections
To earn these gas cash back rates you must hold an active Costco membership. The card carries no separate annual fee beyond membership and Citi lists no foreign transaction fees; it also includes travel protections that Citi highlights as part of the product offering. Fox Business; Citi
Why the change may be happening
Analysts and reporters view the update as strategic: with more than 80 million paid members and high renewal rates, Costco can steer more fuel and in-store traffic to its locations by boosting the in-warehouse pump incentive. The quietly rolled-out change could deepen adoption of the Citi-issued card and increase on-site purchases. Fox Business
How cardholders should respond
- Check your statements: Verify that Citi transactions at Costco gas pumps are coded correctly to receive the 5% rate. Mistagged purchases could earn lower rewards. Citi
- Track the $7,000 cap: If you buy large amounts of gas or use public EV chargers, monitor combined eligible spend — rewards fall to 1% after the cap. Citi
- Remember EV rules: EV charging at Costco does not qualify for the 5% at-pump rate; such charging is treated at the 4% level until the cap. Citi; Fox Business
Implications for Fresno, California
Economic impact: Fresno drivers who frequently fill at Costco could see a meaningful boost in annual savings. For heavy spenders who hit the cap, the move to 5% at in-warehouse pumps could increase annual cash back by as much as $70.
Local shopping patterns: Fresno’s multiple Costco warehouses and pumps could draw more regular fill-ups to Costco, modestly increasing foot traffic and benefiting in-store sales of groceries and supplies.
EV charging and infrastructure: Because the 5% rate excludes EV charging, Fresno EV owners may not get the same extra incentive to use Costco charging stations; the 4% rate still provides value but could blunt charging-station adoption as a primary draw.
Political and civic considerations: For moderate local audiences, the change represents a market-driven loyalty incentive. Elected officials tracking retail activity might note small shifts around Costco stores and gas stations.
Practical effects:
- If you already have the card, prioritize fill-ups at Costco pumps to capture 5% back. Citi
- If you’re considering the card, compare annual fuel spend to the $7,000 cap to determine likely benefit. MoneyTalksNews; Fox Business
- Remember: an active Costco membership is required to use the card and redeem the annual certificate; factor membership cost into your calculations. Fox Business; Citi
Reporting notes and sources
This article draws on official card terms and reporting from Citi, reporting from Fox Business, and explanatory coverage from MoneyTalksNews. Citi’s public terms confirm the 5% and 4% rates and the combined $7,000 annual cap.
Note: Monitor Citi statements for correct transaction coding and track the $7,000 limit to maximize rewards.
