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Comment by blakesterz | Hacker News Reader

I didn't check all of the states that are under $1, but here in NY all of the locations listed that are under $1 are Indian Reservations. Reservations here sell gas, and cigarettes (and a bunch of other stuff) without the state/federal taxes, so it's way WAY cheaper. I assume this is the same in all states?

In my area it's still around $2/gallon. I'm not close enough to a reservation to bother making the drive, but many people (especially smokers) make regular drives to get gas and smokes.

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I paid $0.97 at a Costco in Wisconsin the other day.

That said, I’m not sure why it was so cheap there. The going rate at other stations was about $1.39 and they’re usually closer together than that.

The other gas stations are profiting off of the spread until people realize they can get it much cheaper at Costco or other gas stations.

Costco reacts quicker because they probably don't care about making money on gasoline, and they have a goal to always be offering it at or near cost.

Costco doesn't care about making money on the things they sell, in general.

Costco makes more money from membership fees [1] and this is basically their stated business model. They try to sell everything at a small markup (just covering overhead) and the membership fees are basically profit.

[1] https://www.fool.com/investing/2019/02/13/how-costco-actuall...

https://thehustle.co/costco-membership-economics is a good read too.

Sort of like what's about to happen to housing prices, maybe.

Costco and Woodmans in the Madison area are under $1 as of a few days ago(Costco because memberships, and Woodmans because no credit card fees). Smaller towns had 93c at the regular gas stations the week before.

I have noticed in the past that when oil prices are going down, Costco becomes waay cheaper than other places. But when the oil prices are rising, Costco is not that cheaper.

In other words, Costco prices are updated more frequently than regular gas stations.

A lot of gas stations set their price based on a fixed markup from their costs, and only update their prices when they get a new delivery. High volatility and low sales volume can lead to outdated prices that way.

Chicago area, I haven't seen anything below $1.79. I'm making an assumption that the station owners are trying to make up some lost profit from the lockdowns.

In Chicago each gallon has $0.68 of tax, and that's before the 10.25% sales tax.

I've seen a few threads about local gas prices in some of the less degreed, bluer collar and more rural filter bubbles I'm a part of. Everyone reporting super low prices is either a stone's throw from the refining infrastructure or buying on a reservation. Most people seem to be paying $2+/- $0.50 as of a few days ago.

Edit: changed my wording because apparently some of you would rather have me tiptoe around the differences between HN and the general population.

> less elite social media filter bubbles I'm a part of

It's kind of sad you're getting downvoted for saying this. Everyone could employ a little empathy in times like now.

In addition to the virus fear and threat, there's people out there in a very serious and scary financial pickle right now.

As a data point, here in the semi-rural Midwest I'm paying $1.60/gal. I'd guess if I took a road trip to the res it'd be close to $1, though probably not less.

Another data point, no reservation or anything, it's $1.30 near me in central Kansas.

Saw it for $1.14 in south east Michigan

I saw $1.17 in North Texas yesterday

GasBuddy lists a gas station in Indianapolis at 1.04. Louisville at $1.39.

With a grocery rewards program (Kroger) I filled up 12 gallons for $1.20 the other day :o

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