DENVER — Drivers are feeling the impact of rising gas prices at the pump, with the average price of gas now over $4 a gallon, according to AAA. In Colorado, the average cost is slightly below, but it remains a concern as the war in Iran drives up oil costs.
Greer Bailey, executive director of the Colorado Wyoming Petroleum Marketers Association, explained why this is happening.
"In the short term, the war in Iran, Wall Street speculative trading, and there are some supply issues going on in the country right now," Bailey said.
▶️ WATCH: Denver7's Maggy Wolanske talks with drivers and experts on rising gas prices
Drivers are noticing the difference in price when filling up their tanks. According to AAA, counties like Park, Eagle, Grand, and Routt have prices over $4.10 a gallon. In downtown Denver, drivers shared their thoughts on the rising costs.
"It's costing me instead of $55 to fill it up, it's costing me $70, so you know, you notice it," one driver said.
"They're incredibly high. Obviously, there's not much you can do about it. I drove past a Costco, and it was packed," another driver said.
The high prices are also hurting the people selling the gas, becoming another need to budget for. Bailey explained that station owners pass on the cost that refiners pass onto them and do not benefit from the higher prices.
"I can tell you definitively that retailers do not benefit from higher prices. We pay more in credit card interchange fees. We pay more in cash flow. The refiners don't really benefit more from higher crude oil, because they have to pay more for the inputs in order to get the gasoline," Bailey said.
Heading into the warmer months, drivers hope these prices will at least cool down.
"I think prices will reach an equilibrium. I think they're a little high now; I think they could be closer to $3.50, but hopefully they'll go there in the next couple of months," a driver said.
Looking ahead, Bailey said there is hope that actions taken by the federal administration will lower costs during the summer. For now, prices at the pump are just another expense Colorado families and drivers need to budget for.
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"When we increase the prices, it's simply because the replacement cost of the fuel that we're bringing in, that 8,000 gallons that goes into the underground storage tank, was more expensive than what we just sold the fuel for," Bailey said. "So, that's why prices go up super fast, and prices come down a lot slower because when prices jump up, retailers lose money week after week because the replacement cost exceeds what they just sold the fuel for."
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