SW WI | 79TA403 - 8/21/2025 19:38
In MN I've heard it is illegal to sell gas at less than cost. This supposedly protects the independents. Most of the gas sold here comes from the refinery in Rosemount. Plenty of games are played with setting the price and different stations are aligned with certain stores to offer discounts. For example Casey's is aligned with Hy-Vee.
Mankato/North Mankato is especially funny because there are multiple Kwik Trips, Casey's and other chains scattered around town and the price varies depending on area. Hilltop prices seem to be set by Fleet Farm and Sam's Club with the rest falling in line. Along 169 in the valley it's a different story and downtown does their own thing too. Another unique area is near the university.
A few miles north in St. Peter there is a Kwik Trip on either end of town along 169 and they are frequently different. Quite the racket.
We have 2 flex fuel vehicles and the discount compared to "regular" is usually 70 to 90 cents. Whenever we get in the area I fill at the Badger State ethanol station in Platteville, WI. Wish more ethanol producers would setup their own networks.
Kwik trip, Kwik star is a racket I think. Go to rochester kwik trip matches price with costco go down the road couple miles 10 cents higher of more. kwik trip by me is always 10 cents more than going 10 or miles down the road where kwik trip competes with hyvee and woodmans. Go 13 miles over hill another small town gas is cheaper there than here kwik trip competes with hanson iga. What is done by farmers with grain buying futures etc kwik trip does the same with fuel. kwik trip has special dept deals with fuel, trading futures etc etc.
WI also has a mininum markup law from the 30s or 40s. mininum 9.18 percent . That minum mark up law is tied to pharmacueticals. Few years ago Wi was talking deregulating Pharma for more competition and cheaper prices. Kwik Trip fought that tooth and nail with loobyist so I read if true. Afraid could lead to fuel deregulation.
9 percent of 3 dollars kwik trip gets .27 cents for every gallon now multiply by millions. Kwik has their cheap bread price but is only 3/4 loaf of regular loaf they know how to make money. They are a good run store though at least for much of what I have seen.
MN may have the same mininum mark up law or something like it. |
How and when do gas stations determine their prices?
