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Readers vent about Decorah gasoline prices

Posted: Sun, Oct 4, 2015 4:29 PM

(A recent decorahnews.com "Ask Mr. Answer Person" question http://www.decorahnews.com/archived-stories/2015/09/11867.html asked why gasoline prices are higher in Decorah.  Following the posting of our article, a number of other readers e-mailed):

Bill said: "The only 2 reasons I can think of regarding the higher prices is simply "supply and demand" and "whatever the market will bear".  The price is being dictated by one major retailer (Kwik Trip) in town.  The others follow the leader.  "Supply" is certainly not a problem, and there will always be "demand" for gasoline.  That leaves "whatever the market will bear".   There was a time when I purchased 95% of my gas in Decorah.  I now make the majority of my fuel purchases out-of-town when I'm passing through towns with lower prices.  Now the reality……the gas price differential amounts to nickels and dimes, there are many, many more items that we pay a premium for, especially housing.  It's the price we pay to live in a wonderful community.  There isn't a town within 50 miles where I'd rather hang my hat!"

Paul commented: "I have a friend who works at one of the Decorah gas stations.  She talks of the "Decorah gas cartel".  All of the gas stations have an unwritten agreement to not lower their prices below what the other stations are charging.  It serves to keep gas prices artificially higher than what they should be."

John added: "We were in Cedar Rapids yesterday and one station had $2.05 a gallon.  I question the outrageous price of regular unleaded.  It was $.30 more a gallon (which is outrageous) and now is $.40 more a gallon. It would be interesting if there were something to verify the reason for this cost."

Dave asked, "Why is diesel gas higher than regular gas in Northeast Iowa when diesel is cheaper than regular gas in most of the country?"

Bob commented, "Wisconsin has very strict rules about how much a company can make on fuel and about how many times the stations can change prices in 24 hours.  Minnesota has rules--not quite as strict--but I think their rules are about how much the company can up the price.  But in Iowa there are no rules, so it's pretty much up to the company, it's getting to the end of the fiscal year so I know for a fact retailers will up it as much as they can (without having customers complain) to make up for any shortcomings they have had during the year.  I think it was 6 or 7 years ago they were way behind budget in Iowa so they upped the price at their pumps and actually came ahead for the year!  This is a fact as I was the assistant manager in one of the stores at that time and they talked about it at one of the meetings.  I quit because we moved--so it's not a way of trying to get back at a former employment.