How to Maximize Costco Gas Rewards

Have a Costco membership? Filling up your car there could save you big time.

It's no secret that gas prices have soared over the past number of weeks, due in part to general inflation and also the ongoing Ukraine-Russia conflict. As such, many Americans are having a difficult time keeping up with their expenses.

In fact, based on how much Americans drove in 2021, at today's gas prices, vehicle owners could see the cost of fueling their cars rise to around $181 a month and $2,168 a year. That's more than a month of housing costs for the average person.

All told, gas accounts for 2.6% to over 5% of Americans' budgets. And so when gas costs rise, it's important to eke out as much savings as possible. 

That's where Costco comes in. Costco is known as a source of low-cost household goods and groceries. But many Costco locations also have gas stations. And that gives you an opportunity to save.

Lower-cost gas fill-ups

The amount of money you'll save by filling up your car at Costco will depend on your location and what local prices look like. But for the most part, you can expect to spend less per gallon on gas at Costco than at your typical pump. If you do a weekly shopping run at Costco, it pays to coordinate it with when your tank is running closer to empty so you can maximize your savings.

Eking out the most rewards

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

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

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

One option worth looking at is the Costco Anywhere Visa® Card by Citi. If you shop at Costco a lot, the card is worth getting, because 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 another station.

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

That said, there may be a different credit card out there 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 primary goal is to get rewarded at the pump, you can check out this list of the best gas credit cards. Many of the cards on the list offer benefits aside from bonus cash at the pump, so make sure to do your research -- especially if your current credit cards leave much to be desired.