Costco boosts warehouse gas cash back to 5% and raises cap to $350

COSTCOST

Costco raised gas cash back on its Visa card from 4% to 5% at warehouse pumps for the first $7,000 spent, boosting max rewards to $350 from $280. Outside warehouse pumps and EV charging, gas purchases earn 4% until the annual cap, then 1%, with all other card rewards unchanged.

1. Two-Decade Investment Performance

An investment of $1,000 in Costco stock 20 years ago would now be worth $27,600 including dividends, compared with $7,900 for the same amount invested in the S&P 500. Despite a 6% decline in 2025, Costco’s long-term track record remains significantly superior to the broader market, underscoring its ability to compound shareholder returns over extended periods.

2. Sustained Sales Growth and Membership Expansion

Costco reported 8.2% net sales growth in its fiscal first quarter of 2026 (ended Nov. 23, 2025), marking another quarter of consistent high-single-digit gains. The company added millions of new members during this period and upgraded a substantial portion to Executive status, a tier that generates higher average spend and loyalty. Costco now counts over 80 million paid members globally and maintains a membership renewal rate of approximately 90%.

3. Enhanced Credit Card Gas Rewards

Costco quietly increased the cash-back rate for its co-branded credit card at warehouse gas pumps to 5% from 4%, effective immediately. This higher rate applies to the first $7,000 in annual fuel purchases, raising the maximum cash-back potential from $280 to $350. All other eligible gas purchases and EV charging outside Costco still earn 4% cash back, and traditional earning rates of 3% on dining and travel, 2% on warehouse purchases and 1% on all other spend remain unchanged.

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