National gasoline prices have fallen below $3 a gallon on average for the first time in four years, and Colorado’s prices are even cheaper, as regular drivers have no doubt noticed. The average gallon in Colorado is hovering at about $2.47, at least 40 cents below the price this time last year.
But local drivers may not know why. With the help of some local experts, we’re here to tell you.
It’s because Suncor, the refinery that is the major supplier for Colorado, is buying really cheap Canadian oil.
What’s the price in your neighborhood? Colorado gas prices are low, but mountain towns still pay a big premium. Help us tell the real story about consumer costs by snapping a photo of your neighborhood gas price, along with where it is in the state, and we’ll post it on our Instagram page.
It’s because OPEC is pumping at major volumes around the world, even though their prices are lower than they want.
And it’s because Buc-ee’s is happy to break even at their massive gas pump array in Johnstown so long as you also walk inside and overspend on beef jerky, neck pillows and beaver-themed sleepwear.
National gas prices hit a four-year low last week according to AAA, averaging $2.99 a gallon, the first dip below $3 in that period. Colorado has it even better, according to AAA’s local price wizard Skyler McKinley. There are neighborhood stations on the Front Range selling at $1.69 a gallon, in fierce price fights with competitors across the street, McKinley said.
Suncor’s Commerce City refinery, the only one in the state, gets most of its crude oil in a pipeline straight from Canada’s controversial oil sands fields. While the international benchmark West Texas Intermediate is selling for $57 a barrel, McKinley noted, Suncor can get Canadian oil at $47.
Growth of the mega-fueling convenience stores, from Buc-ee’s to QuikTrip to Maverik, in the Front Range suburbs is also bringing prices down, McKinley noted. They don’t need to turn a profit on gasoline, because they have thousands of square feet of retail space selling us water-based drinks at $6 a pop, or a hundred varieties of dried meat, or every known variety of salty chip.
That competition doesn’t help the mountain towns, though — Pitkin County is averaging $4.30 a gallon right now, McKinley said, and Front Range drivers who stay home don’t know how good they have it.
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