Buying gasoline on Alaska Highway 41 in Anchorage has been a major challenge for the company, as it’s been unable to sell enough of the premium gas to satisfy consumers.
Now, the company is offering the cheapest fuel in the state for the first time.
“The low prices and the ability to buy gas in the low-price region of the state will allow us to provide the best value to our customers in the long run,” Buena Vista said in a statement.
“This is a win-win situation for everyone.”
The state’s highest-volume region is the eastern portion of the Anchorage market.
That includes the town of Nome, a popular vacation spot with vacation homes and a large population of the Bering Sea-side.
That area is a key market for Buena, because its abundant gas is a major reason the company’s customers drive there.
Buena is trying to reach more people there, so it’s trying to offer the cheapest gas possible there.
“If we can get our gas price to $1 per gallon in the area where Nome is located, that will bring us $5 million in new revenue and help us pay down debt,” Buenaventures Chief Operating Officer Michael Baca said in the statement.
Buena Vista’s move to offer cheap gas to Alaska’s highest gas consumers has been controversial.
The company has been lobbying state officials to lower the gas tax, but lawmakers have refused to do so.
Buenavegas has a $1.3 billion budget and has an annual revenue of $17.4 billion.
The company also has a contract with the Alaska Oil and Gas Conservation Commission to sell gas in Alaska.
But the commission has said it’s considering making changes to its system and that the company should be allowed to sell its gas at lower prices, which would lower prices for its customers.
Buenavents decision to lower its gas prices comes as the state faces a $6.7 billion budget deficit, according to the Anchorage Daily News.
The agency is asking the governor to allow the company to sell fuel at lower rates to its customers, but Buena Valley says it can’t do that because the commission is asking for a new contract.
Buenfalls spokesman Dan Tinkler told the paper that the agency’s request for a $7 per gallon contract for the gas price drop is “irrational” and that it should be replaced by one that allows the company and its customers to sell gasoline at a price closer to what it sells in the eastern market.
Buigne Valley spokesman Scott Taylor said the company wants to lower gas prices as a way to attract more customers, because customers pay less to use the company services.
Buigne Valley has about 2,600 employees and operates about 1,600 facilities, including hotels, restaurants, retail stores and office buildings.