Costco quietly boosts Citi card gas rewards to 5% at warehouse pumps
Costco has raised the fuel reward on the Costco Anywhere Visa Card by Citi to 5% cash back at Costco-owned pumps for the first $7,000 of combined eligible gas and EV charging purchases per year, increasing the maximum annual payout to $350.
- 5% at Costco pumps: The Costco Anywhere Visa Card by Fox Business reports gas at Costco-owned stations now earns 5% cash back, up from 4%.
- 4% elsewhere: Non-Costco gas and eligible EV charging still earn 4%, both rates applying to the same $7,000 calendar-year cap.
- Cap and payout: The first $7,000 of combined gas/EV charging earns 5% or 4%; after that, rewards drop to 1%, raising the top annual reward from $280 to $350.
What changed — and what didn’t
What changed: Costco increased the top-tier gas rate for the co-branded Citi card to 5% cash back when cardholders fuel at Costco-owned pumps. This is a targeted increase intended to steer more fuel spend to warehouse stations.
What didn’t change: Outside Costco, eligible gas and EV charging still earn 4% cash back, and the combined annual cap of $7,000 in eligible purchases remains in place. The card’s other reward rates are unchanged. (Sources: Fox Business, Citi, MoneyTalksNews.)
How the annual cap and payout work
Both the 5% rate at Costco pumps and the 4% rate elsewhere apply only to the first $7,000 in combined eligible gas and EV charging purchases per calendar year. After that combined total is reached, the reward rate for those categories falls to 1%. That change increases the maximum cash back available at the elevated rates from $280 to $350 annually. For details on eligible transactions and how the cap is applied, see Citi’s guidance on the benefit page: Citi’s published benefits page.
Redemption and card basics
Rewards from the Citi-issued Costco card are not issued as monthly statement credits. Instead, cardholders receive an annual certificate after the February billing cycle that can be redeemed at Costco warehouses for cash or merchandise. The card requires an active Costco membership; there is no separate annual fee for the credit card itself. Cardholders also benefit from no foreign transaction fees and built-in travel protections. (Sources: Fox Business, Citi.)
Why the change matters to members — and to Costco
For rural drivers, small-business operators, and frequent commuters, even modest incremental savings on fuel compound over a year. The move to 5% at Costco pumps strengthens the incentive to refuel at Costco where available, potentially increasing in-warehouse traffic and membership value. Industry watchers say the update likely bolsters loyalty and renewal rates among Costco’s large member base. Fox Business notes the change appears designed to encourage upgrades and steady renewals.
What the limits mean for frequent drivers
Households that exceed roughly 20,000–25,000 miles annually — depending on vehicle fuel economy — may surpass the $7,000 cap and see the 1% rate applied for the remainder of the year. That means farm vehicles, contractor trucks, and heavy users should track year-to-date eligible gas and EV charging totals to estimate how long the higher reward window will last. Citi’s benefit explanation clarifies eligible transactions and the combined nature of the cap: Citi.
Practical tips for members
- Fill at Costco when possible to capture the 5% rate at warehouse pumps. (Fox Business)
- Track combined gas and EV charging spend to avoid an unexpected drop to 1% after you hit $7,000. (Citi)
- Plan redemptions: Rewards arrive as a certificate in February — plan how and when you will redeem it at Costco.
Implications for the United States
Economic impact: The extra $70 potential annual reward can matter for households and small businesses that heavily consume fuel; it may concentrate more refueling at Costco pumps where available. (Fox Business, Citi)
Political and social effects: Rewards programs can shift consumer behavior and market share toward retailers with pump networks; lawmakers and local officials may take interest in how incentives affect local fuel markets. Communities without nearby Costco locations may not benefit equally, and increased traffic near warehouses is a possible local effect. (MoneyTalksNews)
