Costco quietly makes a major credit card change members love | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

While you might be able to eliminate or limit certain trips, most Americans, outside of those who live in big cities with public transportation, have to fill their gas tanks.

Even as the driver of an electric car with a small backup gas tank, I still find myself watching prices at the pump. On longer trips, especially when charging options are limited, gas stops become unavoidable, making fuel rewards more meaningful for a wide range of drivers.

Only about 8% of Americans drive fully electric vehicles, according to data from Edmunds.

A June 2025 WalletHub survey showed that Americans are worried about gas prices.

Tariffs Put the Brakes on Driving: 48% of Americans say tariffs on everyday goods will prevent them from driving as much.
Penniless After the Pump: 69% of Americans feel that gas prices are too high.
Gas Inflation Hits Harder: Nearly 1 in 5 people say that high gas prices are worse than food inflation.
High Demand for Gas Rewards: More than 4 in 5 Americans prefer earning rewards on gas over other travel purchases.
Demand for Gas-Only Cards: Nearly 1 in 3 Americans have a credit card just for gas.
Recipe for Disaster: 64% of people say that the combination of $4 gas, high inflation, and tariffs would destroy their finances.

Costco, along with its credit card partner Citi, wants to help ease that pain.

Costco has given some members an added gas perk.

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Americans are paying less for gas

The average price per gallon for regular gas on Jan. 15 came in at $2.84, according to data from AAA.

“The national average for a gallon of regular gas went up a couple of cents since last week to $2.84. Drivers are still paying less than they were last year when the national average was $3.08. Pump prices are typically low in January thanks to a dip in gas demand and cheaper winter blend gasoline,” AAA shared.

The price had fallen slightly to $2.82 on Jan. 19.

“Gasoline demand increased last week (the week of Jan. 15) from 8.17 million b/d to 8.30 million. Total domestic gasoline supply increased from 242 million barrels to 251 million. Gasoline production increased last week, averaging 9.0 million barrels per day, according to new data from the Energy Information Administration (EIA).

AAA gas facts

Jan. 15 National Average: $ 2.84
One Week Ago: $2.81
One Month Ago: $2.90
One Year Ago: $3.08
The nation’s top10 most expensive gasoline markets are Hawaii ($4.40), California ($4.21), Washington ($3.79), Alaska ($3.47), Nevada ($3.35), Oregon ($3.33), Washington, D.C. ($3.10), Pennsylvania ($3.01), Michigan ($2.99), and Vermont ($2.99).
The nation’s top 10 least expensive gasoline markets are Oklahoma ($2.32), Texas ($2.42), Kansas ($2.42), Mississippi ($2.43), Louisiana ($2.43), Arkansas ($2.45), Missouri ($2.46), Wyoming ($2.49), Alabama ($2.50), and Iowa ($2.50). Source: AAA

Costco raises its cash back on gas

Costco has increased its cash back on gas from its own gas stations from 4% to 5% for people who pay with the Costco Anywhere credit card from Citi. The warehouse chain’s gas stations only take credit and debit cards.

You cannot pay with cash.

Costco CFO Gary Millerchip sees the change as a way to make membership more valuable.

And then we’re committed to continuing to improve the value of the membership. We’ve made some major changes recently with the extended opening hours, the Instacart benefits, and 5% gas on the credit card, but we’ll continue to look for ways to add greater membership value,” he said during Costco’s first-quarter earnings call.

Gas sales have been a driver for the chain, according to CEO Ron Vachris.

“We had a record year for gas volumes, which benefited from longer gas station hours, new gas stations, and expansions of existing gas stations as well,” he said during the fourth-quarter earnings call.

Key Costco Anywhere credit-card perks

5% cash back on gas at Costco stations (up to $7K/year then 1%)
4% cash back on eligible gas & EV charging elsewhere (up to the same cap)
3% cash back on dining and eligible travel
2% cash back on Costco and Costco.com purchases
1% cash back on all other purchases
No annual fee (requires paid Costco membership)
No foreign transaction fees and other travel/purchase protections Source: Citi