DENVER — Over the past few weeks, Colorado drivers may have seen a sudden decline in gas prices, even dropping 33 cents within the past week.
As of Tuesday morning, AAA said the national average is now sitting at $3.98, with the statewide average at $3.83.
“Colorado drivers are paying about $9 less for a full tank of gas than they did in late October, when gas prices were at their fall peak,” AAA spokesperson Mark Jenkins said.
AAA officials said a big factor behind the drop is the falling cost of crude oil, which has dropped about 11% since late October. About half the price per gallon that we pay at the pump is influenced by oil prices.
“Oil prices are now down at around $90 a barrel, and that directly influences the cost of producing gasoline, which is why we tend to see gas prices move lower when oil prices move lower,” Jenkins said.
We’re also past the busy summer driving season, meaning less demand for gasoline. Refineries are now switching to their winter fuel blends, which is cheaper to produce.
Easing tensions surrounding the conflict in Iran and the end of hurricane season are also helping take some pressure off oil prices.
“The conflict with Iran was really instrumental in causing oil and gasoline prices to shoot up the state average. Here in Colorado, it reached a 2026 high of $4.78 per gallon,” Jenkins said.
AAA said we can expect to see lower prices throughout the winter months, but prices tend to start climbing again in the spring and summer as demand increases.
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