Why are gas prices so high in Ames?

BCClone

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Not exactly sure.
Lived in a town of 4000 in northern iowa for a few years. Had a coworker who knew one of the gas station owners. They were having drinks and the owner told my coworker that he needed to change prices since he just got a new shipment of gas. To cut this shorter, the owner told him that the owner of the other gas stations in town also was the distributor. One time when a holiday was coming, he did t raise his prices like they all usually did. He received a call from the distributor and was told that if he didn’t raise the price, he would not get the next shipment.

Best think for that town was a Caseys showed up and used a different distributor. During the first gulf war, gas prices went up 80 cents at every place and people filled up out of fear, I saw Casey’s wasn’t raised and went there. They never did raise and about two days later, the rest dropped.

A quik star came in and was built on top of one of the old distributors stores and the other closed and is now a cell phone place. I refused to go into those places after learning how he would gouge people. So much for local people taking care of each other.
 

madguy30

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Lived in a town of 4000 in northern iowa for a few years. Had a coworker who knew one of the gas station owners. They were having drinks and the owner told my coworker that he needed to change prices since he just got a new shipment of gas. To cut this shorter, the owner told him that the owner of the other gas stations in town also was the distributor. One time when a holiday was coming, he did t raise his prices like they all usually did. He received a call from the distributor and was told that if he didn’t raise the price, he would not get the next shipment.

Best think for that town was a Caseys showed up and used a different distributor. During the first gulf war, gas prices went up 80 cents at every place and people filled up out of fear, I saw Casey’s wasn’t raised and went there. They never did raise and about two days later, the rest dropped.

A quik star came in and was built on top of one of the old distributors stores and the other closed and is now a cell phone place. I refused to go into those places after learning how he would gouge people. So much for local people taking care of each other.

Something I don't understand is how a Kwik Trip (WI style) can have significantly different prices than one down the street. Another a mile or two away usually has the lowest prices around.

You'd think it would be a company-wide deal for specific areas to have the same but I'm sure way more goes into it.
 

SCNCY

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Has it continued to go down in Iowa though for example?

I don't live in Iowa, so I don't know. I just wanted to point out that there was another possible factor as to why the price of gas increased during the week of college move in. I am not saying the increase in demand for a college town had nothing to do with it, but the trading of oil probably had some factor in the increase of gas prices.
 

Al_4_State

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I was driving home from a bachelor party in southern Iowa on Sunday and saw that a gas station had gas for $3.12 along Highway 218 just north of Mt Pleasant. I wanted to wait for the Kum & Go in Riverside to get less greasy food for breakfast. It was 30ish miles or so. Gas was $3.69 in Riverside.
 

Turn2

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The price gradient from Ankeny (best price in town) to ~100 miles due west (best price in town) was $0.71 this weekend. I don't know if that's unprecedented or not, but it's pretty crazy.
 

SEIOWA CLONE

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I was driving home from a bachelor party in southern Iowa on Sunday and saw that a gas station had gas for $3.12 along Highway 218 just north of Mt Pleasant. I wanted to wait for the Kum & Go in Riverside to get less greasy food for breakfast. It was 30ish miles or so. Gas was $3.69 in Riverside.
Was it that BP station at Olds, they generally always have cheaper priced gasoline for some reason. Mt. Pleasant also has cheaper gas than Fairfield or Ottumwa.
 
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VeloClone

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Interesting to see the country-wide, state gax tax.
For example, living in MO as I do, with .22 state gas tax, this is lower than the IA state tax of .24 - .305 per gal tax (not sure how that varies either). I should be paying 2-8 cents less per gal than my friends in IA. It doesn't always work that way. Right now, in Spgfld, MO the ave is about $3.17 - 3.27.

Right now, apparently, in IOWA, gas is ranging from about $2.95 - 3.16.

Go figure how all this works? I think stations and communities price where and what they want, often times maybe setting an 'area' price, but I can't say this for sure. There may be other costs and taxes involved also.

I'm not sure what Ames is going for at the moment.
About 30 years ago I was working at a convenience store as a second job. They had a problem at the Keokuk store so they paid me to travel there for a shift or two until they could replace the people they had to fire. This convenience store was less than a mile from the MO border and while they had pumps I didn't sell a single gallon of gas the whole time I filled in there. I was told that wasn't uncommon. With the difference in gas tax they couldn't afford to match prices so everyone in town knew to drive the extra mile or so to get the cheaper gas across the border.

Looking at histories I believe Iowa was at $0.20 per gallon while Missouri was at $0.11 at the time. And when driving on Missouri roads you could tell...
 
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Cyrealist

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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.
For years the big stations on rural interstates kept prices 10 to 20 cents high. There was a time where the K&G by the interstate in Story City was 12 cents higher than the K&G in town that was less than a half mile away. When my son was at Cedar Falls, gas prices were often 30 cents lower than where we live.
 

Cyrealist

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The UNL88 is 15% ethanol as opposed to the E87 which is 10% ethanol. As such it gets a discount in the state gas tax to encourage it's use and also ethanol is cheaper than gasoline. UNL88 also reduces emissions over the E87, 10% ethanol mix. Generally, at Kwik Star the UNL88 has been $0.10-$0.30 per gallon cheaper than the E87 10% ethanol blend.
I've used E15 a few times this summer and haven't noticed any mileage penalty. I might avoid it in the winter though.
 
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KidSilverhair

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I was driving home from a bachelor party in southern Iowa on Sunday and saw that a gas station had gas for $3.12 along Highway 218 just north of Mt Pleasant. I wanted to wait for the Kum & Go in Riverside to get less greasy food for breakfast. It was 30ish miles or so. Gas was $3.69 in Riverside.
That’s the Olds BP station on 218/27. Always the best price there for miles around (although Mt. Pleasant usually isn’t much higher, what with that competition). Riverside always seems high to me, probably trying to skim off winning gamblers at the casino.
 
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Al_4_State

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That’s the Olds BP station on 218/27. Always the best price there for miles around (although Mt. Pleasant usually isn’t much higher, what with that competition). Riverside always seems high to me, probably trying to skim off winning gamblers at the casino.
I don't travel that way enough to have noticed before, but I made a mental note after a $.57/gallon difference.
 

cyclone87

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You may want to check your math.

I know Costco in WDM is usually about a quarter cheaper than the competition. I have a 22 gallon tank. So my $55 membership requires 10 fillups at $5.50/ fillup.
Right now Sam’s is about .70 cents cheaper than the other stations (probably averages .30-.40 cents cheaper). At .70 cents and 20 gallon tank it would take like 2.5 fill ups to pay off the $40 membership.
 
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aauummm

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I've used E15 a few times this summer and haven't noticed any mileage penalty.
I agree. I've kept track of my mileage for the past year and a half and compared the mileage for each of the octane grades Premium 91 (Kwik Star-0% Ethanol), Regular 87 (10% Ethanol) and UNL 88 (15% Ethanol) and found that there wasn't much difference in mileage. The type of driving, highway vs city, number of stop lights, amount of idling, etc. all had a much more effect on the mileage than the ethanol content of the gasoline.
 
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