KRDO13 Investigates: Why gas prices can vary 20 to 30 cents across southern Colorado
COLORADO SPRINGS, Colo. (KRDO) - As tensions in the Middle East continue to influence global oil markets, many southern Colorado drivers have been asking a different question closer to home: Why can gas prices vary so dramatically from one part of town to another?
KRDO13 Investigates reviewed gas prices across southern Colorado and identified several higher-priced pockets, particularly near Fort Carson and along major travel corridors including Interstate 25 and Highway 24. In some cases, drivers were paying roughly 20 to 30 cents more per gallon than at stations located just a few miles away.
According to gas price analyst Patrick De Haan with GasBuddy, the answer often comes down to local market conditions rather than a single factor.
"Competition is a great thing, and it keeps stations honest," De Haan told KRDO13 Investigates.
De Haan said gas stations do not all follow the same pricing strategy. Some stations choose to keep prices lower in an effort to attract more customers, while others may charge more and rely on a smaller volume of sales. He said that can create noticeable price differences even between stations located just a few miles apart.
Location can also play a role.
Stations near major highways often face different market conditions than stations located in areas with several nearby competitors. According to De Haan, a station located near a major travel corridor may not face the same pricing pressure as stations competing directly against multiple businesses at the same intersection.
Another factor is fuel requirements.
De Haan said some Colorado communities are required to sell a cleaner-burning gasoline blend during the summer months. According to De Haan, some Colorado communities are required to sell reformulated gasoline during the summer months. The cleaner-burning fuel is intended to reduce air pollution and can cost more than conventional gasoline.
Gas stations may also pay different wholesale prices for fuel depending on when they purchase it.
According to De Haan, many stations purchase fuel every few days rather than every day. When oil markets are volatile, stations can end up paying significantly different prices for fuel deliveries, which can then affect the price displayed on the sign out front.
The issue comes as global oil prices continue to react to developments involving Iran and the Strait of Hormuz, a critical shipping route for global energy supplies.
According to Reuters, oil prices fell Monday after markets reacted positively to reports of diplomatic developments involving Iran and easing concerns about disruptions to oil shipments through the Strait of Hormuz.
For now, De Haan says consumers who compare prices before filling up may be able to save money, particularly in areas where competition between stations is limited.
If you have information you believe the public needs to know, KRDO13 Investigates wants to hear from you. Tips can be submitted by emailing 13Investigates@krdo.com.
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