Why are gas prices so high in Ames?

[Cycsk]

I bought gas this morning in Slater for $3.39 per gallon, but when I got to Ames, everyone was selling for $3.89 per gallon. Why does it cost 50 cents more per gallon in Ames? And why does every gas station (except Sam's Club) sell for the same price. I don't think there is a monopoly, but maybe it is as simple as informal price-fixing. Is there someone in Ames who sets the price and others follow?

 

[Gorm]

I bought gas this morning in Slater for $3.39 per gallon, but when I got to Ames, everyone was selling for $3.89 per gallon. Why does it cost 50 cents more per gallon in Ames? And why does every gas station (except Sam's Club) sell for the same price. I don't think there is a monopoly, but maybe it is as simple as informal price-fixing. Is there someone in Ames who sets the price and others follow?

College Town effect.

Gas is routinely 30-40 cents less a gallon in Cedar Rapids compared to Iowa City.

 

[Urbandale2013]

I bought gas this morning in Slater for $3.39 per gallon, but when I got to Ames, everyone was selling for $3.89 per gallon. Why does it cost 50 cents more per gallon in Ames? And why does every gas station (except Sam's Club) sell for the same price. I don't think there is a monopoly, but maybe it is as simple as informal price-fixing. Is there someone in Ames who sets the price and others follow?

Bad news for you $3.39 is high by 21 cents. Plenty of places are $3.18.

 

[dafarmer]

$3.14 in Ankeny

 

[CYEATHAWK]

I bought gas this morning in Slater for $3.39 per gallon, but when I got to Ames, everyone was selling for $3.89 per gallon. Why does it cost 50 cents more per gallon in Ames? And why does every gas station (except Sam's Club) sell for the same price. I don't think there is a monopoly, but maybe it is as simple as informal price-fixing. Is there someone in Ames who sets the price and others follow?

Diesel the last few months has been 30-50 cents per gallon less in Ankeny (Fleet Farm/Sams) than Des Moines. There have been exceptions where the gap is less......but have driven to Ankeny a few times to fill up when it's a wide gap.

And just for grins and giggles.......a Shell station in Williams Az had premium at $6.39 a gallon last week. It was the only station I have seen in years where gas is higher than diesel.

 

[SCNCY]

Are their local taxes in Ames levied on the sale of gas that or their cities don’t do?

 

[gocy444]

$4.84 in Woodland Park, CO this morning

 

[3TrueFans]

$3.24 at Sam's Club in Ames

 

[aauummm]

$3.14 in Ankeny

$3.16 Murphy's in Altoona or $3.01 for UNL88 at Kwik Star in Altoona

 

[cyclone87]

Are their local taxes in Ames levied on the sale of gas that or their cities don’t do?

No. It’s just what the gas stations decide to set the price. Maybe distributors charge a little more? Story city and Nevada are around the same price as Ames. Sam’s membership in Ames is a no brainer. Filled up at 3.19 a few days ago when other stations still 3.89

 

[Cycsk]

College Town effect.

Gas is routinely 30-40 cents less a gallon in Cedar Rapids compared to Iowa City.

What college town effect?

• Students can pay more because of their student loans?
• High professional double-incomes/no kids households?
• University contracts for fuel prop up prices for everyone?
• Ripe for cartels and/or price-fixing like apartment pricing and turnover.

Or does it have nothing to do with a college town effect? Is there someone or a few people who just informally agree to keep prices higher in Ames.

 

[Gorm]

What college town effect?

• Students can pay more because of their student loans?
• High professional double-incomes/no kids households?
• University contracts for fuel prop up prices for everyone?
• Ripe for cartels and/or price-fixing like apartment pricing and turnover.

Or does it have nothing to do with a college town effect? Is there someone or a few people who just informally agree to keep prices higher in Ames.

I've lived either in Ames or 20 minutes from Iowa City all of my life, and gas prices have always been higher in those two cities. Feel free to pick out whatever reason you want to for that.

 

[Buster28]

It's the Gary Thompson effect. He owns the distribution company (Gary Thompson Oil) for most fuel in and around Ames.

 

[BryceC]

Just brought gas in Chicago on Friday for 5.39 a gallon. Blew my hair back a bit.

 

[CyCrazy]

Go to Sams Club its 3.15

 

[Agclone91]

The only gas stations in Ames are Kum & Go and Casey's, and even at that there are 7 K&G's vs 3 Casey's. They can pretty much sat the price at whatever they want. Hoping Kwik Star coming to town breeds some more competition.

 

[Snydes]

It's the Gary Thompson effect. He owns the distribution company (Gary Thompson Oil) for most fuel in and around Ames.

Winner, Winner… thank your former Cyclone great and his strategic pricing model courtesy of his mostly local monopoly (and also why i buy all of my gas out of town)…

 

[Dr.bannedman]

gas has always been high in ames

 

[BoxsterCy]

I don't know what petrol is here in Mpls area. Filled up the other day but didn't really look at the price but it was $3-something or another for the premium I put in the 20 year Boxster-mobile.

 

[4cy16]

The only gas stations in Ames are Kum & Go and Casey's, and even at that there are 7 K&G's vs 3 Casey's. They can pretty much sat the price at whatever they want. Hoping Kwik Star coming to town breeds some more competition.

I'm shocked that Ames doesn't have multiple Kwik Stars.