Costco quietly boosts gas rewards to 5% for cardholders — what shoppers in the Inland Empire need to know
Costco has quietly raised fuel cash back for the Costco Anywhere Visa Card to 5% at Costco pumps (up from 4%), capped at $7,000 per year — a change that can affect Inland Empire commuters’ savings.
- Card: Costco Anywhere Visa Card, issued by Citi.
- New gas reward: 5% cash back at Costco gas stations (up from 4%) with a combined cap.
- Cap: First $7,000 in combined gas/EV purchases per calendar year (up to $350); then 1% thereafter.
- Rewards timing: Annual certificate issued after the February billing cycle, redeemable at Costco warehouses (Fox Business).
What changed, and how it was revealed
Costco raised the cash-back rate on fuel purchased at its warehouse pumps from 4% to 5%. The update appeared quietly in card terms and on Citi’s informational pages rather than through a public Costco announcement, according to reporting by Fox Business and follow-up coverage by consumer sites including MoneyTalksNews.
Scope and coding: Costco pumps vs. other purchases
The 5% rate applies only to purchases made at Costco-branded gas stations, not to fuel bought at other chains. Citi’s official card information groups gas and EV charging under the gas/EV benefit category — see Citi’s terms — but reporting varies on whether EV charging is treated identically to Costco pump transactions. Cardholders should review receipts and statements and consult Citi for transaction coding questions.
How the cap works — math that matters
Both the 5% (Costco pumps) and 4% (eligible gas/EV purchases elsewhere) rates apply only to the first $7,000 in combined gas and EV spending per calendar year. At 5%, $7,000 in qualifying Costco gas purchases yields $350 cash back (up from the prior $280 maximum at 4%). After reaching $7,000, additional gas/EV purchases earn 1% for the rest of the calendar year.
How rewards are paid
Cash back from the Costco Anywhere Visa Card is tallied by Citi and delivered as an annual certificate after the February billing cycle. Members redeem the certificate at Costco warehouses for cash or merchandise; expect the same certificate process to continue with higher reward totals.
Other card features and eligibility
The card carries no separate annual fee beyond an active Costco membership. It includes travel protections, no foreign transaction fees, and unchanged reward tiers: 3% on restaurants and eligible travel, 2% on Costco purchases, and 1% on everything else — details available on Citi’s benefit page.
Why the change matters to shoppers
A one percentage-point increase may seem modest, but it adds up: households that spend heavily on fuel can earn more back over a year. For example, a household averaging $200 per month in fuel (~$2,400/year) would net roughly $24 more annually if they fill at Costco. Families or small businesses approaching the cap could gain up to an additional $70 annually versus the prior rate.
Reporting discrepancies on EV charging
Media reports differ on whether EV charging at Costco or other stations receives the 5% rate. Citi groups gas and EV charging together under eligible purchases, but outlets have emphasized that the top 5% appears focused on Costco pumps. EV drivers should monitor statements and contact Citi for specific transaction coding clarification (see Citi’s terms and reporting by MoneyTalksNews).
How Costco positioned the change
Costco did not make a prominent public announcement; the adjustment was confirmed through Citi’s pages and business reporting. Observers say quietly updating terms rewards frequent shoppers while limiting broad attention that could raise company costs. The shift also reinforces the value of filling up at Costco for members who might otherwise fuel elsewhere (Fox Business).
Implications for the Inland Empire
Economic impact: The Inland Empire spans Riverside and San Bernardino counties, with many commuters traveling long distances. A higher 5% reward can produce meaningful savings for frequent drivers and may shift pump traffic toward local Costco stations. For households spending $200/month on fuel, the extra 1% could equal ~$24 per year; heavy drivers nearing the cap could gain ~$70 more than before.
Political and planning effects: While a private-sector change, increased pump traffic around warehouses could influence congestion near Costco sites and raise questions about EV charger placement and equitable access to savings—especially in neighborhoods without nearby Costco locations.
Social and cultural effects: Modest savings may encourage more residents to retain Costco memberships or use the Costco card more often, affecting foot traffic and local spending patterns. In car-centric Inland Empire communities, rewards favoring in-person Costco fueling align with existing shopping and commuting behaviors, though EV drivers may see mixed benefits depending on transaction coding.
Practical actions for Inland Empire residents
- Check local Costco stations: Confirm whether your nearest Costco has a fuel station and compare pump prices before you fill up.
- Review statements: Track how transactions are coded and contact Citi if EV charging or third-party pumps appear misclassified — refer to Citi’s gas benefits.
- Monitor the cap: Track combined gas and EV purchases to know when you near the $7,000 threshold; consider timing purchases if that helps your household budget.
- Remember redemption timing: Rewards arrive as an annual certificate after the February billing cycle and must be redeemed at Costco warehouses (Fox Business).
Sources and further reading
Key reporting and official information:
- Fox Business: “Costco quietly boosts gas rewards for branded credit card holders to 5% cash back”
- Citi: Costco Citi Card gas benefits
- MoneyTalksNews: “Costco is now offering cash back on gas with its Visa card”
Quote: “The update surfaced in Citi’s card terms rather than a public Costco announcement, and readers flagged the change to consumer sites,” — reporting that underscores the quiet rollout.
