What goes up, must come down

Kati Jividen

Unusually low gas prices have sparked a gas price war in Ames this week, causing many residents to reevaluate where to buy gas and at what price.

“People are gassing up in Ames instead of Des Moines because of the lower price,” said Kevin Thatcher, employee at Conoco on South Duff and junior in civil engineering. “Even those from the surrounding communities are driving to Ames to save an extra dollar.”

Gas prices vary with every convenience store as well as every town. As of Wednesday, Swift Stop, 412 S. Duff; Kum & Go, 4506 Lincoln Way; Jiffy, 326 Lincoln Way; and Conoco are among the service stations offering prices of 90 cents per gallon. In Des Moines, prices have stayed between 93 and 95 cents per gallon.

“We were at 92.9 [cents per gallon] last week, while Conoco was at 90 [cents],” said Erica Roth, employee at the South Duff Swift Stop. “We just switched to 90.9 [cents] to compete with [Conoco] because they are next door.”

Thatcher said competition from surrounding gas stations is causing the prices to decrease.

“Jiffy lowered their prices and everyone matched their price to get a foothold,” Thatcher said. “We are at rock bottom now.”

The decision to lower Jiffy’s gas prices was made by the company’s corporate owner.

“We’re a corporate company, and it’s Rock Island that decides our prices,” said Chevy Alber, cashier at Jiffy.

He said Jiffy’s gas prices are bringing in more money and a lot of business.

“We’re doing very well,” Alber said.

Swift Stop employees also feel their gas station is doing well.

“We are down to compete with everyone else,” said Maggie McDowell, assistant manager of Swift Stop. “A lot of people are happy with the price of gas right now.”

Those who thought gas prices were lowered because of the back-to-school crowd were wrong in their assumptions, gas station employees say.

“The price doesn’t depend on whether students are back,” Thatcher said. “Everyone follows everyone else.”

Chris Olerich, manager of Kum & Go on Lincoln Way, said the low cost of the resource makes the cost of the final product lower.

“The cost of petroleum is down, so it is reflecting on the pumps,” he said.

“Ames has a high competitive market, so we stick with the local pricing,” Olerich said. “You can’t price yourself out of the market.”

Students are seeing the low prices as an added bonus to coming back for classes.

“Gas in Ames is cheaper than in Texas, where it is $1.21,” said Purvee Patel, sophomore in business from Texas. “By saving money I am able to afford pizza to escape … food service.”

Craig Streit, junior in construction engineering, is also happy with the low prices.

“I will have more money to spend this weekend at the Lake of the Ozarks,” he said.

While drivers are pleased with the low gas prices, not all convenience store employees share consumers’ enthusiasm.

“I don’t think the whole thing is that big of a deal,” Thatcher said. “A number of people say it is great so they stock up, but they are only saving a dollar.”