Colorado Springs gas prices near national average

COLORADO SPRINGS, Colo. (KRDO) - Colorado gas prices are currently around $4.13 and are increasing to hover near the national average, according to AAA. This rise is primarily due to the summer fuel blend being priced in, which typically results in a 15-cent price increase, a AAA spokesperson tells KRDO13. The statutory switchover for this blend is scheduled for May 1st.

Skyler McKinley, regional director of public affairs for AAA, noted that while gas prices in Colorado and across the Front Range had been relatively stable, the summer blend is now contributing to upward pressure. McKinley explained that crude oil is more expensive than expected for this time of year due to instability in the Middle East, coupled with increased seasonal demand as people take summer road trips.

The current price increases are not unprecedented for the state, explained McKinley. The regional director of public affairs for AAA tells KRDO13 that the most expensive gas prices on record in Colorado occurred in the summer of 2022, reaching $4.92 per gallon.

"That was because Russian energy exports became persona non grata on the international markets, and we were dealing with the price impact of that on crude oil," McKinley said.

Geopolitical events continue to influence pricing, the AAA expert said. McKinley highlighted that continued instability and conflict often lead to rising gas prices.

"Continued instability, continued conflict will lead to rising gas prices, whereas promises of peace or a glimpses of peace will tend to lead to prices falling," McKinley stated.

The impact of rising crude oil prices extends beyond gasoline for vehicles. McKinley noted that increased crude oil costs affect jet fuel, plastics and the transportation of all goods that arrive via cargo ship or motor carrier.

"As oil prices increase, costs increase to consumers specific to the airlines, they're anticipating a diminution in demand as a function of higher prices," McKinley said, referencing recent flight cancellations by major carriers due to higher jet fuel costs.

An association of discount airline carriers is seeking $2.5 billion in assistance from the federal government. The Association of Value Airlines, the trade group for smaller airlines like Spirit, as well as Frontier, Allegiant and Breeze, has been talking to members of Congress about the request, according to executive director Jonathon Freye. The group says the federal money would help keep fares lower throughout the entire industry.

AAA explained how this could lead consumers to adjust their habits when gas prices reach a certain point. McKinley observed that at the $4 mark, consumers typically combine errands, carpool, or try alternative forms of transportation to minimize daily trips. He added that if prices average around $4.50, travel behavior shifts, paradoxically leading to more road trips as families cut back on more expensive discretionary travel, such as flying.

While McKinley cautioned against speculation, he said that at some point, prices will go back down.

"As an expert, I'm certain of one thing. In my lifetime, gas prices will go down. But short of that, anybody who's speculating on the price, really, I think, is lying to you. And the reason being is that the situation is very volatile. It necessarily involves these complicated questions of war, peace, the Strait of Hormuz and the global economy. It's really not up to the analysts. So I think in broad strokes, we are going to see upward pressure as a function of demand, regardless," explained McKinley.

McKinley says when it comes to gas prices, they can change overnight. He characterized price changes by saying the cost of gas will rise like a rocket and fall like a feather.

Colorado Springs and the Front Range have historically experienced lower gas prices compared to the national average, AAA explained. McKinley attributed this to strong regional competition among service stations, a relatively low gas tax and robust supply lines from Canada.

While Colorado Springs is currently at about $4.14 per gallon compared to the national average of $4.17, the region cannot be completely insulated from the global economy, said McKinley.

But drivers are not the only ones feeling the pain at the pump; service station owners also feel the impact of high gas prices.

"Service station owners don't want prices to be high," McKinley explained. He added that the business model relies on attracting customers with lower gas prices who then purchase higher-margin items like beverages or snacks inside the store.

For consumers looking to save money, McKinley advised that the most significant impact comes from driving less. For families unable to drive less, McKinley recommended budgeting for gas in the $4.25 to $4.50 range through July, noting that prices may fall if there is good news on the international front.

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