HENDERSON, Colo. — Colorado drivers are finding some much-needed relief at the gas pump this holiday season, with prices nearly 50 cents per gallon cheaper than the national average, according to AAA.
Fuel in Colorado currently averages about $2.47 per gallon statewide, making it the second-cheapest in the country. The lowest average — just over $2 a gallon — can be found in Adams County. Some stations are even selling gas for as little as $1.70 or less.
“You haven’t seen that since COVID,” said Grier Bailey, executive director of the Colorado-Wyoming Petroleum Marketers Association. “That’s great for families, that’s great for consumers, that’s great for Christmas budgets.”
Bailey said the drop in prices comes down to simple economics.
“Refiners are making fuel, less and less people are driving — drives the price down,” he said. He pointed to supply and demand, the price of crude oil and Colorado’s own refining capacity as factors. “We’re lucky we have a refinery in Colorado and that does help put downward pressure on pricing.”
Colorado has also seen growth in big-box gas retailers.
“Maverick, Quick Trip, Murphy Express — they are competing for customers. They want to get you in,” Bailey said. “They offer really competitive street prices in order for that to happen. Colorado consumers are benefiting.”
Skyler McKinley, regional director of public affairs for AAA, said the downward trend is being seen nationwide, with prices dipping below $3 a gallon for the first time in about four years. But Colorado is positioned to reap particular benefits.
“OPEC Plus member countries have not cut production. They’ve been flooding the system with oil. That brings the prices down overall,” McKinley said. He noted that the Suncor refinery in Commerce City makes it relatively inexpensive to refine in Colorado. “We typically refine Canadian fuel, which we can’t export. So we refine it. We got to sell it.”
McKinley warned against chasing the lowest prices if it means extra driving.
“One, the cost of the gas in your tank just to get to that gas station if it’s not convenient to you and, two, the wear-and-tear on your vehicle, which IRS estimates at about 58 cents a mile,” he said. “You’re never going to save money by driving to get gas. My best advice is to fill up at the service station closest to you that tends to have competitive pricing.”
Bailey expects prices to remain low through winter, especially with continued retailer competition and steady supply.
“People like low gas prices. I can tell you that station owners like low gas prices,” he said.
For now, Colorado drivers can enjoy the rare holiday gift of cheaper gas — without having to drive far to find it.
