Do you have a Costco membership? Filling up your car there could save you a lot of time.
- Many Costco warehouses have gas stations that offer lower cost fuel.
- You can save even more money buying gas at Costco using the Costco Anywhere Visa® Card from Citi.
It’s no secret that gas prices have skyrocketed in recent weeks, due in part to general inflation and also to the ongoing conflict between Ukraine and Russia. As such, many Americans find it difficult to keep up with their spending.
In fact, based on how far Americans drove in 2021, at current gas prices, vehicle owners could see the cost of fuel for their cars rise to around $181 per month and $2,168 per year. That’s more than a month of housing costs for the average person.
In total, gas accounts for between 2.6% and more than 5% of Americans’ budgets. And so when gasoline costs rise, it’s important to achieve as much savings as possible.
That’s where Costco comes in. Costco is known as a source for inexpensive grocery and household items. But many Costco locations also have gas stations. And that gives you the opportunity to save.
Low-cost fuel refueling
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 of gas at Costco than at your typical pump. If you make a weekly purchase at Costco, it’s worth timing it around when your tank is running low so you can maximize your savings.
Earning the most rewards
Some gas stations offer a discount to customers who pay in cash instead of using a credit card. Costco does not do this. Rather, it advertises the same price regardless of how you pay. (It does offer different prices for regular versus premium gas, though, which is to be expected.)
As such, it pays to use the correct 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 considering is the Costco Anywhere Visa® Card from Citi. 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 another station.
To be fair, that 4% cash back rate is limited to your first $7,000 in gas expenses per year. From there, you only get 1% cash back on top-ups. But let’s face it: Even at today’s prices, most people don’t spend $7,000 a year on fuel for their vehicles.
That said, there may be a different credit card that offers a better rewards program, including a more generous cash back setting 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 a reward at the pump, you can check out this list of the best gas credit cards. Many of the cards on the list offer benefits in addition to cash bonuses at the gas station, so be sure to do your research, especially if your current credit cards leave a lot to be desired.
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