While gasoline prices have stayed steady this summer, Colorado AAA said uncertainties with the U.S. economy and global conflicts could still scramble the outlook at the pump.
Despite warnings that a specialized blend of gas would drive up costs for metro Denver and the northern Front Range, prices have been stable. Statewide, gas is $3.39 per gallon of regular grade unleaded. Last year at this time, the price was $3.96 per gallon.
There was concern that gas prices could jump by as much as 50 cents a gallon to pay for the reformulated gas required across the northern Front Range in efforts to cut ozone pollution. The area is in violation of federal air-quality standards and the Environmental Protection Agency mandated selling the special blend from June to September.
Current prices are up less than a nickel since June 1.
Colorado AAA said Monday that the economic turmoil in the wake of signs that the U.S. economy is slowing down could affect prices. Markets at home and abroad were tumbling in reaction to a weaker-than-expected U.S. jobs report last week.
A slowing economy could mean lower gas prices because oil prices fall in an economic downturn because less petroleum is needed to move goods and people, Colorado AAA said. Prices typically decline as summer travel slows and demand decreases.
However, other forces could move the counter on the gas pump up if hurricanes and storms in the Gulf of Mexico hamper petroleum refining along the Gulf Coast. And rising tensions between Israel and Iran could disrupt global oil supply in the case of embargoes and supply-chain disruptions, Colorado AAA said.
“When we talk about gas prices, what we’re really talking about is a micro-expression of macroeconomic trends: From commodity pricing to global conflicts, small international movements can have a big impact on what Coloradans pay at the pump,” said Skyler McKinley, regional spokesman for AAA.
Gas prices tend to lag one to two weeks behind any sudden change on the oil markets because previously bought gasoline remains in service station tanks until it is sold to consumers.
“No matter what happens in the immediate future, we’ll have continued steadiness priced in for at least several weeks,” McKinley said.
Current gas prices in some parts of the state:
Denver
• Current Average: $3.34
• Month Ago Average: $3.37
• Year Ago Average: $3.93
• Highest Recorded Average: $4.89 (6/21/22)
Fort Collins – Loveland
• Current Average: $3.38
• Month Ago Average: $3.35
• Year Ago Average: $3.94
• Highest Recorded Average: $4.86 (6/20/22)
Pueblo
• Current Average: $3.45
• Month Ago Average: $3.38
• Year Ago Average: $4.06
• Highest Recorded Average: $4.96 (6/21/22)
Grand Junction
• Current Average: $3.35
• Month Ago Average: $3.22
• Year Ago Average: $3.94
• Highest Recorded Average: $4.95 (6/29/22)
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Originally Published: August 5, 2024 at 2:25 p.m.
