Low gas prices not expected to last

With more people on the roads this holiday season, lower gas prices are making a lot of people happy.

According to gasbuddy.com, the average for a gallon of gas in Colorado Springs is $2.29. Some places have gas for as low as $2.03 per gallon. The cheapest in Pueblo is $2.39 per gallon while the national average is $2.51.

Fred Crowley, a UCCS economics professor, told KRDO NewsChannel 13 that the reason for the low prices starts overseas, with big oil-producing countries like Saudi Arabia, Russia and Venezuela.

“Saudi Arabia is behind the current push to keep lower prices, to drive out the less efficient producers,” Crowley said.

But the prices won’t last, Crowley said. Driving out the competition is costing Saudi Arabia a lot of money.

“A break-even price of oil for Saudi Arabia is about $100 a barrel. Right now at $55 a barrel, they’re losing money,” Crowley said. “Realistically, we probably will see this run for another two to three weeks. I’d be surprised if it lasts two to three months though that is possible depending on how determined Saudi Arabia is.”

As for the price variation in the region, Crowley said it probably has to do with the gas station’s contracts to buy oil.

“They might be stuck in an old contract that says you’re still buying oil, gasoline at the old price of 250 as opposed to the new price of 175, the wholesale of it,” Crowley said.

To find the cheapest gas in your area, click here.