Bass Ackwards Gas Prices?
July 29, 2006 9:01 PM Subscribe
GasFilter: Why are gas stations in central Iowa selling premium gas cheaper than regular gas?
posted by ArbiterOne to Travel & Transportation around Iowa (20 answers total)
I'm in central Iowa visiting relatives, and I've noticed something strange: gas stations are selling 'Super Unleaded' high-octane gas for as much as 10 cents less than 'Regular Unleaded'. At first, I thought it must be a mistake, but I've since noticed it in other gas stations, even those of other franchises. How can this be profitable/economically sensible for them?
I've come up with some hypotheses:
a) It's nota mixup on the part of the gas station attendants, since I've seen it in more than one place.
b) There's some sort of surplus of premium gasoline as compared to normal gasoline. I don't *think* this is the case, as I've seen it over a rather wide area (towns 100+ miles apart). Besides, since cars that can take normal gasoline can just as easily run on premium, I would think that this would be self-correcting.
c) The stations can somehow purchase premium gas cheaper than regular gas. I don't know how this could be the case, and I'm pretty sure there's a law against stations selling gas below cost.
Beyond that... no idea. Enlighten me!
P.S.: I just joined MeFi after lurking for a while, so this is my f1rst p0st.