Costco quietly makes a major credit card change members love

While you may be able to cancel or limit some travel, gas is a must for most Americans except those who live in large cities with public transportation.

Even as a driver of an electric car with a small backup tank, I still find myself watching prices at the gas station. On long trips, especially when charging options are limited, refueling is inevitable, making fuel rewards even more meaningful for a wide range of drivers.

Only about 8% of Americans drive all-electric vehicles, according to Edmunds.

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

  • Tariffs hinder economic development: 48% of Americans say tariffs on everyday items would prevent them from driving.

  • Penniless after the pump: 69% of Americans think gas prices are too high.

  • Gas inflation hits harder: Nearly a fifth said high oil prices were worse than food inflation.

  • High demand for Gas rewards: More than four-fifths of Americans prefer earning rewards on gas over other travel purchases.

  • Demand for gas-only cards: Nearly one-third of Americans have a credit card just for gas.

  • A recipe for disaster: Sixty-four percent said the combination of $4 gas, high inflation and tariffs would destroy their finances.

Costco and its credit card partner Citibank want to help ease the pain.

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</div><figcaption class=Costco is offering some members additional gas subsidies.Shutterstock · Shutterstock

The average price of regular gasoline on Jan. 15 was $2.84 per gallon, according to AAA.

“The national average price per gallon of regular gasoline has increased a few cents since last week to $2.84. Drivers are still paying less than last year, when the national average price for gasoline was $3.08. Gasoline prices are typically lower in January due to lower natural gas demand and lower winter blend prices,” AAA said.

On January 19, the price dropped slightly to $2.82.

“Gasoline demand increased last week (week ended January 15) from 8.17 million barrels per day to 8.3 million barrels per day. Total domestic gasoline supply increased from 242 million barrels to 251 million barrels. Gasoline production increased last week to average 9 million barrels per day, according to the latest data from the Energy Information Administration (EIA).

  • National average price on January 15: $2.84

  • One week ago: $2.81

  • One month ago: $2.90

  • One year ago: $3.08

  • national topThe 10 most expensive markets for gasoline They 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).

  • national Top 10 cheapest gas markets They 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

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Costco is increasing cash back at its gas stations from 4% to 5% for those who pay with Citibank’s Costco Anywhere credit card. The warehouse chain’s gas stations only accept credit and debit cards.

You cannot pay with cash.

Costco Chief Financial Officer Gary Millerchip sees the change as a way to make memberships more valuable.

Then we work on continuing to improve the value of our membership. We’ve made some big changes recently, including extended hours, Instacart benefits and a 5% gas fee on credit cards, but we’ll continue to look for ways to increase the value of our membership,” he said during Costco’s first-quarter earnings call.

CEO Ron Vachris said natural gas sales have been a driving force for the chain.

“We achieved record natural gas sales driven by extended gas station hours, new gas stations and the expansion of existing gas stations,” he said during a fourth-quarter earnings call.

  • 5% cash back Fill up at Costco gas stations (up to $7,000 per year, then 1%)

  • 4% cash back Eligible petrol and electric vehicle charging elsewhere (same maximum limit)

  • 3% cash back About dining and qualifying travel

  • 2% cash back Shop at Costco and Costco.com

  • 1% cash back All other purchases

  • No annual fee (Paid Costco membership required)

  • No foreign transaction fees and other travel/purchase protections
    Source: Citi

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This article was originally published by TheStreet on January 20, 2026, and first appeared in the Retail section. Click here to add TheStreet as your preferred source.

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