MUSCATINE, Iowa — The $2.99 price posted on the gas pump may have seemed like a mirage in the summer heat Friday.

But it was no illusion.

Standing beside his pickup truck at Rik’s Convenience in Muscatine on Friday, Don Holladay touched his index finger to the digital display as if to make sure the price was real.

“This here’s almost a dollar’s savings almost for every gallon I buy,” the 57-year-old farmer said as his sales total approached $300.

Unleaded gas was selling for $3.89 per gallon at most gas stations in Muscatine Friday, but hundreds of cars lined up outside Rik’s Convenience, 3103 U.S. Highway 61, to take advantage of $3.01 per gallon premium unleaded and $2.99 unleaded. Only cash transactions were allowed.

Sales clerk Amber Paasch said staff ended the sale, which began around 9 a.m., at about 12:30 p.m. Some of the approximately 100 cars in line were allowed to fill up until about 1:30 p.m., when the price was raised to $3.75, she said.

Rik’s convenience initially cut prices to $3.75 per gallon on Thursday night, “but that wasn’t low enough,” said another sales clerk, Lee Laughead.

Owners Steven and Melanie King of Columbus Junction told staff to cut prices further Friday morning.

By 10:30 a.m., about 20 vehicles waited in line between the store and the highway.

Holladay said a friend called to tell him about the low prices. He and his son, Troy, 35, filled up the 30-gallon gas tank in Holladay’s truck, then began filling three 16-gallon and one 30-gallon tanks in the back of his pickup. Holladay said he expected to purchase a total of about 150 gallons.

Kim Nelson, 50, of Illinois City, Ill., topped off the fuel tank in her sedan at about 11 a.m., and said she waited about 30 minutes in line.

Although she purchased only about half a tank, “$40 (usually) compared to $15, I’m ecstatic,” she said.

By 11 a.m., about 30 vehicles waited in line and began to back up traffic on U.S. 61. Police arrived and Laughead and clerk Belia DeHoyos started directing the increasing traffic into a loop in the adjacent Walmart parking lot.

Some motorists honked horns and yelled at other drivers as traffic entering from different directions competed for a place in a single line.

“It’s crazy. It’s kind of hectic,” DeHoyos said.

Jeff Johnson, 26, of Atalissa, filled up the tank in his girlfriend’s Mustang after she received an e-mail at work about the gas prices and called him.

“Everyone knows,” said Kim Castillo, 43, of Muscatine, after receiving a cell phone call from a friend asking if the prices were real.

As word spread, so did speculation about why the prices were being offered. A number of people said they heard station owner Steven King dropped the price to raise money for a bond that stemmed from an arrest Thursday.

Neither he nor Melanie King could be reached for comment Tuesday, but members of Melanie King’s family said the sale was only a limited-time promotion to generate business.

They would not address whether the store was going out of business, but said the sale was not related to Steven King’s arrest.

Steven King, 39, was arrested Thursday after police were called to his mother- and father-in-law’s house in Bettendorf. He was charged with second-degree burglary, a Class C felony, and misdemeanor counts of fourth-degree criminal mischief and obstruction of emergency communication.

Steven King was being held Friday in Scott County Jail on $10,000 cash-only bond.

Court documents state that he threatened the family over the phone, and then kicked in the house’s back door with the help of another person at about 1:30 a.m. King allegedly grabbed the male owner as he tried to stop King from ripping the telephone cord while the owner was dialing 911.

Maggie Shanks, Melanie King’s mother, said Friday, “There was no burglary. It was a personal family matter and everyone involved is working for a resolution.”

Reporter contact information

Jennifer Meyer: 563-262-0525

jennifer.meyer@muscatinejournal.com