How to Maximize Costco Gas Rewards

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Do you have a Costco subscription? Refueling your car there could save you a lot of time.


Key points

  • Many Costco warehouses have gas stations offering fuel at lower cost.
  • You can save even more money shopping for gas at Costco using the Costco Anywhere Visa® Card from Citi.

It’s no secret that gas prices have skyrocketed in recent weeks, partly due to general inflation and also the ongoing conflict between Ukraine and Russia. As such, many Americans struggle to keep up with their expenses.

In fact, based on the amount of U.S. vehicles in 2021, at current gas prices, vehicle owners could see their car’s gas cost increase to around $181 per month and $2,168 per month. year. That’s over a month of housing costs for the average person.

In total, gas represents 2.6% to more than 5% of American budgets. So when gas prices go up, it’s important to get as much savings as possible.

This is where Costco comes in. Costco is known as a source for low-cost household items and groceries. But many Costco locations also have gas stations. And it gives you the opportunity to save.

Lower cost gas refills

The amount of money you’ll save by filling up your car at Costco will depend on your location and local prices. But for the most part, you can expect to spend less per gallon on gas at Costco than at your regular pump. If you do weekly grocery shopping at Costco, it pays to coordinate it with when your tank is nearly empty to maximize your savings.

Get the most rewards

Some gas stations offer a discount to customers who pay cash instead of using a credit card. Costco doesn’t do that. Rather, it advertises the same price regardless of how you pay. (It does, however, offer different prices for regular vs. premium gasoline, which is to be expected.)

As such, it pays to use the right credit card when filling up your car at Costco. This could result in big savings.

This Costco credit card gives you 4% cash back on gas

One option worth considering is Citi’s Costco Anywhere Visa® card. If you shop a lot at Costco, the card is worth getting, as it gives you 2% cash back on Costco purchases. It also gives you 4% cash back on gas whether you fill up at a Costco station or any other station.

To be fair, that 4% cash back rate is limited to your first $7,000 in gas spend per year. From there, you only get 1% cash back on refills. But let’s be real – even at today’s prices, most people aren’t spending $7,000 a year to fill up their vehicles.

That said, there may be a different credit card that offers a better rewards program, including a more generous cash back setup for gas. It’s worth exploring different options and seeing what you find, especially if you drive a lot.

In fact, if your main goal is to get rewarded at the pump, you can check out this list of the best gas credit cards. Most of the cards on the list offer perks in addition to cash bonuses at the pump, so be sure to do your research, especially if your current credit cards leave a lot to be desired.

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