Gas Prices in Colorado Drop Below $2, Drivers Applaud Trend as Supply Surges and Demand Loses Steam
In an unexpected turn of events, gasoline prices in Colorado have tumbled to their lowest levels in over two years. Motorists in cities like Colorado Springs and Denver are now finding regular unleaded fuel for as little as $1.70 per gallon. This price drop has not only delighted local drivers but has also sparked debate about energy policies and economic management, especially as it contrasts with inflation concerns in other parts of the country.
One viral video captures the excitement of the moment, showcasing a driver in Colorado Springs thrilled to fill up his truck for merely $45. The accompanying tweet lauds the price drop, attributing it to increased oil supply while praising former President Trump for creating favorable economic conditions. “The Fake News is being forced into admitting it!” the tweet boldly declared.
Gas stations along Garden of the Gods Road in Colorado Springs proudly display prices of $1.93 per gallon, prompting a rush of bargain hunters. “I came here out of my way to get gas because it’s a lot cheaper here,” said Hannah Burke, echoing the sentiment of many eager to save at the pump. Another driver remarked, “Today it was only $44, but I put in 22.4 gallons. I haven’t seen prices like this since 2021.”
According to AAA and industry insiders, Colorado stands out as one of the four states with the lowest average gasoline prices. In El Paso County, the average price hovers around $2.34 per gallon, while neighboring Pueblo County is slightly higher at about $2.41. Some locations, thanks to an abundance of supply and competitive pricing, are dipping even further.
Skyler McKinley of AAA explains that the price plunge results from a combination of sagging demand and surplus oil in the market. “OPEC Plus member countries have not cut production. They’ve been flooding the system with oil. That brings the prices down overall,” he noted. Patrick De Haan, head of petroleum analysis at GasBuddy, points out the remarkable affordability at certain stations in Colorado, highlighting that these places are up to 15% cheaper than similar stations in Oklahoma City.
The Suncor refinery in Commerce City, capable of producing up to 98,000 barrels each day, plays a significant role in maintaining lower gas prices. Colorado’s geographical conditions contribute to this scenario as well. De Haan explained that the state’s relative isolation often keeps refined fuel local rather than exporting it, further driving down prices.
Intense competition among large gas retailers, including Maverik, QuikTrip, and Murphy Express, has spurred aggressive pricing strategies. These companies aim not only to attract drivers for refueling but also to entice them inside for snacks and drinks. “Most of the margin in owning a gas station isn’t in the gas,” McKinley stated. “It’s actually in getting folks to stop in, buy a hot dog, buy a Coca-Cola.”
Grier Bailey, Executive Director of the Colorado-Wyoming Petroleum Marketers Association, noted that the principles of supply and demand are evident in the current market. “Refiners are making fuel, and less and less people are driving. It drives prices down. That’s great for families. That’s great for consumers. That’s great for Christmas budgets.”
The timing of this price drop is particularly fortuitous, coinciding with the holiday season when many families usually face financial stress. With lower travel costs and more disposable income, consumers are celebrating the dual benefits. Nationally, gasoline prices have dipped below $3 per gallon for the first time since 2021, largely due to Colorado’s sub-$2 pricing in several counties.
Statistics reveal that Colorado’s average gas price stands around $2.47 per gallon, considerably lower than the national average. This considerable gap can significantly affect a driver’s budget. Filling a 25-gallon tank at $2.47 costs just over $61 compared to $75 at $3.00 a gallon.
Consumer behavior has shifted as fewer individuals commute or travel long distances, resulting in reduced demand. De Haan highlights that with refiners maintaining consistent production, “barring any major disruptions, prices are likely to stay relatively low into the new year.”
Another contributing factor is the seasonal change to winter blend gasoline, which is less costly to produce and directly benefits consumers. With winter weather further limiting travel in some areas, demand continues to drop.
On a broader scale, this situation presents a potential case study in energy independence and domestic refining capacity. The Suncor refinery’s location near the Denver-Julesburg Basin, a key oil-producing region, allows it to refine local and Canadian crude oil close to the final consumer. This proximity minimizes transportation costs and shields prices from fluctuations in the international market.
While critics of certain energy regulations might view the current drop in prices as validation for increasing refining capabilities and reducing export limitations, others remain skeptical, citing potential geopolitical tensions and chances of OPEC+ production cuts in the future.
Yet, for the moment, drivers across Colorado are relieved. “That’s a blessing for folks who’ve been paying $3, $4, even $5 a gallon not too long ago,” Bailey observed. “This is good for everybody.”
Broader national trends mirror the favorable situation on an individual state level. GasBuddy reports a wave of gas stations in states like Oklahoma, Texas, and Colorado selling fuel for under $2 a gallon, some as low as $1.69. “Every single state has seen relief at the pump over the past week, a rare feat that underscores how challenging the fundamentals are for gasoline prices right now,” De Haan concluded.
Whether this trend will continue remains uncertain, but one fact is clear: the significant price drop, particularly in Colorado, is making waves just in time for the holiday season and winter expenses.
"*" indicates required fields
