Continued high gas prices starting to discourage travel by many southern Coloradans, local economist says Tuesday

COLORADO SPRINGS, Colo. (KRDO) -- The upcoming Spring Break period, along with the following summer vacation season, often result in higher demand and prices for gasoline but demand this year could be significantly reduced by prices that are among the highest in the country.

Tatiana Bailey, founder and director of Data-Driven Economic Strategies, in Colorado Springs, fears that gas prices in Colorado could continue rising through fall -- longer that one local expert recently predicted.

Bailey said that the state's average pice for a gallon of gasoline is $4.10, which is 70 cents above the national average.

"We're seeing some decline in individual travel," she said. "Typically, prices are pretty quick to come up (during) inflationary periods but they take a long time to come down, and we're seeing that. I'd be surprised if we ever see prices under $3.00 a gallon again. I think those days may be over."

Bailey said that Colorado's high gas prices are being caused by several factors.

Among them: Milder winter weather that has increased demand more than usual; the closure of the Suncor refinery in Commerce City, from which 40% of the state's gasoline is produced; inflation; higher interest rates; and control of pricing internationally by the Organization of Petroleum Exporting Countries (OPEC).

"Investors for refineries are declining worldwide, which makes sense," Bailey explained. It's very time-intensive to find oil, and then build a refinery. It takes a lot of money. Investors are asking if it's worth it."

She added that she's looking more at the long-range impact than the short-term.

"People are really starting to cut back," she explained. "We're seeing that in the economic data. There's ongoing concern, in terms of not only today's prices but of expectations for inflation to stay higher for a longer period of time, than we originally thought."

Bailey said that buying an electric vehicle may be the best long-term protection from high gas prices.

"I purchased an electric vehicle and I think it's the greatest thing," she said. "And it does pay for itself in lower gas prices within a few years. By 2030, (half) of the world's new vehicles are supposed to be electric. The trend is happening faster than expected."

Traveling by plane, Bailey said, is another option because airline flights are relatively less expensive than high gas prices.

So what should you do if you're reconsidering that Spring Break or summer vacation trip?

"If you can afford it and you're not borrowing money at crazy interest rates, then you should go," she advised.

Yet some drivers are already changing their plans.

“I’ve already canceled my trip to see my daughter in California because of high gas prices," said Florissant resident Rick Jennings. "I can’t afford to drive out there. I was going out there in May, so I’ve already canceled that. Can she afford to come see me? No."

Sharnice Pollard, of Colorado Springs, said that she will take Bailey's advice and travel by plane.

"I’m originally from Georgia, so it’s a long ride," she said. "Flying tends to be a little cheaper. But I probably still won't go."

Other drivers have mixed reaction to considering electric vehicles as an option.

"I think that's the way to go and that's our future," said Traci Lyles, of Manitou Springs. "I seems like there are more affordable options out there for us."

But Fred Govdeo disagrees.

"I'm not sold on electric vehicles," he said. "They have limited range, they need charging stations and they're vulnerable to power outages."