[SlowBoat407]

but what are they thinking in setting price floors???

I guess the idea is that it keeps the larger companies, which can absorb a loss in one location for a short time, from dropping prices below what the independents can charge, thus running them out of business. Once they're gone, the prices go up again.

[longtermmemmory]

I wonder if it also affects the taxation of gas formula.

If it falls too low then you end up paying more in taxes than gasoline.