Why are gas prices so high in Ames?

[BCClone]

 

[kirk89gt]

Pretty simple. College town and lead up to college resuming. Similar to the lead up to and during holidays. You see the same thing for concerts, and businesses tied to travel.

 

[Agclone91]

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

I think they will before long. First one just opened by Theisens this week and it has been packed every time I've been by.

 

[theshadow]

Pretty simple. College town and lead up to college resuming. Similar to the lead up to and during holidays. You see the same thing for concerts, and businesses tied to travel.

It's that in part, but there's also more to it.

In the middle of July, Ames was still 45-50 cents higher than Fort Dodge.

 

[DrClone]

It's that in part, but there's also more to it.

In the middle of July, Ames was still 45-50 cents higher than Fort Dodge.

And ankeny

 

[cyfan92]

The Roland Rocket's monopoly on gas distribution doesn't help...

 

[alarson]

Its interesting the different margins between products even at Kwik Star:

Ankeny: UNL- 3.14, UNL88 3.04
Ames: UNL- 3.89, UNL88 314

 

[CyCrazy]

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.

What? We have Hyvee gas, Swift Stops, Sams and now Kwik Star.

 

[LarryISU]

I've been driving over from Omaha for football games for probably 15 years. In all that time I have never bought gas in Ames. It is always the highest price on the entire drive. Even small towns like Madrid or Adel are cheaper. Always.

 

[BCClone]

Kids are moving in this week (we take our daughter tomorrow) so they kinda have a captive week also.

 

[alarson]

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

Don't most of these bigger companies truck around their own fuel at this point?

 

[Cycsk]

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

Seriously? I wondered if it was something like that. However, it seems that big companies like HyVee could find a way to source cheaper if he overcharges.

 

[Rabbuk]

Seriously? I wondered if it was something like that. However, it seems that big companies like HyVee could find a way to source cheaper if he overcharges.

Why would hyvee want to undercut themselves?

 

[Cycsk]

Why would hyvee want to undercut themselves?

They wouldn't be undercutting themselves. They would be undercutting a particular distributor who charges too much by using another distributor.

 

[NWICY]

It's that in part, but there's also more to it.

In the middle of July, Ames was still 45-50 cents higher than Fort Dodge.

Ft. Dodge actually dropped prices for state softball, they are higher now than then. CR and DM are pretty low MC isn't super competitive right now they were 3.30 for unleaded 88.

 

[4cy16]

Ft. Dodge actually dropped prices for state softball, they are higher now than then. CR and DM are pretty low MC isn't super competitive right now they were 3.30 for unleaded 88.

3.53 this morning.

 

[Lewey24]

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.

It’s just higher demand lol. Higher demand leads to higher prices. It’s not some grand conspiracy lol

 

[MeanDean]

It has nothing to do with timing of students moving in. It's ALWAYS higher in Ames and Iowa City.

After a person's first couple trips to towns like that you learn to fill up elsewhere on the way or on the way home.

That said, there has always been some kind of local price fixing going on. I've driven by stations of different brands after midnight in different parts of town that have the same price - then drove by them early the next morning on the way to work and somehow in that 5 hour overnight time they both magically decided to raise their prices from the same identical low price to a newer identical high price.

 

[alarson]

It has nothing to do with timing of students moving in. It's ALWAYS higher in Ames and Iowa City.

After a person's first couple trips to towns like that you learn to fill up elsewhere on the way or on the way home.

That said, there has always been some kind of local price fixing going on. I've driven by stations of different brands after midnight in different parts of town that have the same price - then drove by them early the next morning on the way to work and somehow in that 5 hour overnight time they both magically decided to raise their prices from the same identical low price to a newer identical high price.

I always remember it being a bit higher than des moines, but not the extreme differences we've seen lately.

 

[cyclone87]

Its interesting the different margins between products even at Kwik Star:

Ankeny: UNL- 3.14, UNL88 3.04
Ames: UNL- 3.89, UNL88 314

Yea I got the UNL88 at the Ames station a few days ago. Couldn’t believe how much cheaper it was. Kwik Star has their own supplier/distributor for the 88, maybe Thompson supplies the other blends?