Gas Prices Hit Yearly Low

Skyler McKinley

Colorado has the largest week-to-week price decrease in the country

DENVER (Dec. 13, 2018) – Colorado drivers can expect to pay a statewide average of $2.45 per gallon of regular unleaded gasoline, down from nearly $2.80 a month ago and about the same as this time last December. Colorado pump prices have hit their lowest point in 2018, in fact, and are down nine cents from this time last week – the steepest week-to-week decline anywhere in the United States.

Supply Outpacing Demand
Globally, crude supply is growing faster than anticipated. Contributing to the surplus is the United States’ record-breaking production levels – which last month hit the highest level ever recorded by the Energy Information Administration (EIA) at 11.7 million barrels per day. Additionally, there is more Iranian supply in the market than expected due to the U.S. granting crude sanction waivers to some of Iran’s largest importers, including India, South Korea, and Japan.

To reduce the growing surplus of global crude supply, the Organization of Petroleum Exporting Countries (OPEC) last week met to discuss the potential of cutting crude production by up to 1 million barrels per day. Along with non-member partner producers, led by Russia, OPEC has agreed to collectively cut crude output by 1.2 million barrels a day starting in January and for a period of six months. Motorists likely won’t see higher crude prices reflected in their gas bill until the start of the higher demand driving season next summer.

AAA forecasts that so long as crude stays below the $60 per barrel mark, Coloradans can count on cheaper gas prices through the end of the year. Crude is currently trading around $52 per barrel.

Regional Trends

Gas prices continue to trend cheaper across the Rockies. On the week, Colorado (-9 cents) has the largest decrease in pump prices in the country. With a seven-cent decline, Idaho and Montana saw the largest decreases on the week. Utah (-5 cents) and Wyoming (-4 cents) consumers are also paying less to fill up at the start of the week. State gas price averages range from $2.45 to $2.83, which are more expensive than this time last year at a regional level.

Regionally, gasoline stocks built by 126,000 bbl as refinery utilization dropped to 94 percent. Year-over-year stocks are comparable, with the EIA reporting the Rockies region touting a total of 6.9 million bbl.
Colorado Gas by the Numbers

Denver

• Current Average: $2.33
• Yesterday Average: $2.35
• Week Ago Average: $2.42
• Month Ago Average: $2.70
• Year Ago Average: $2.41

Boulder-Longmont

• Current Average: $2.35
• Yesterday Average: $2.36
• Week Ago Average: $2.44
• Month Ago Average: $2.72
• Year Ago Average: $2.43

Colorado Springs

• Current Average: $2.37
• Yesterday Average: $2.38
• Week Ago Average: $2.44
• Month Ago Average: $2.68
• Year Ago Average: $2.40

Fort Collins-Loveland

• Current Average: $2.44
• Yesterday Average: $2.45
• Week Ago Average: $2.50
• Month Ago Average: $2.78
• Year Ago Average: $2.43

Pueblo

• Current Average: $2.53
• Yesterday Average: $2.54
• Week Ago Average: $2.58
• Month Ago Average: $2.76
• Year Ago Average: $2.49

Grand Junction

• Current Average: $2.63
• Yesterday Average: $2.65
• Week Ago Average: $2.73
• Month Ago Average: $2.92
• Year Ago Average: $2.52

Vail

• Current Average: $2.98
• Yesterday Average: $2.96
• Week Ago Average: $3.02
• Month Ago Average: $3.21
• Year Ago Average: $2.95

Winter Fuel & Driving Tips

As you hit the road this winter, AAA offers these tips to help conserve fuel and keep motorists safe:

• If possible, only run the engine and heater long enough to remove the chill. This will help to conserve fuel. Also, parking your car in a garage will help it stay warm.
• As a precaution, keep at least half a tank of fuel in your vehicle at all times. It helps to reduce condensation in the fuel system. It also helps ensure an adequate reserve of fuel to run the engine for heat should your car become disabled in a remote location.
• Be sure to pack an emergency roadside kit in your car containing a mobile phone and car charger, first-aid kit, blankets, drinking water and snacks, a flashlight with extra batteries, a basic toolkit, warning flares, an ice scraper, jumper cables and a shovel.