Because the state deal keeps the records secret, no one has a clue. But many suspect the money is being used to drive prices down – among them, the Policy Center’s Michael Ennis, author of the report. The tribes are supposed to use the money for transportation purposes. Under terms negotiated by the governor’s office in 2007, the state handed out $28 million last year from the funds that are used to maintain highways, and projections indicate that the payments will just keep growing as the tribal stations snatch market share from non-Indian competitors. That spells big trouble for the state as tribal stations blossom and expand. The report analyzed gas prices in markets where tribal stations are major players, and it found that some days last July Indian stations were undercutting the competition by as much as 48 cents a gallon. And while no one seems able to prove it, the fact that the state is handing millions of dollars of state highway-construction money to the tribes every year may have something to do with it. 6.-A new report from the Washington Policy Center confirms what critics have been saying for years – Indian gas is cheaper.

State Gives Away Gas Taxes to Tribes, and Non-Indian Gas Stations Suffer, Says Washington Policy Center

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