Colorado has the second-lowest gas prices in the nation, and Denver has some of the lowest prices in the state.
Gas prices around the Denver metro averaged $2.41 per gallon on Thursday, compared to about $3 nationally, according to AAA.
Some stations are offering prices well below $2 this week, with a low of about $1.67 at one Shell station.
Gas prices are normally lower in the winter, with fewer people driving. But this year is unique in Denver because large national chains have been opening gas stations and driving down prices, said Grier Bailey, the executive director of the Colorado Wyoming Petroleum Marketers Association.
“The Denver market in particular has benefited from some of our national partners. Companies like QuikTrip and the Maverik/Kum & Go group and some folks who have built some stores,” Bailey said. “And like everybody always says, increased competition is better for consumers.”
Prices in Denver and nationwide averaged around $3.20 in August. They have fallen across most of the country, but the effect has been much more dramatic in Denver, according to data from the tracking service GasBuddy. Prices here are at their lowest point since 2021.
Bailey noted that drillers in Colorado produce about 35 to 40 percent of the fuel that is used here, saying the rest comes from a system of pipelines and trucking companies. The price of crude oil has also been falling, accounting for some of the price drop here and nationally.
The average commuter drives a little more than 1,000 miles per month in Colorado. If they get 25 miles per gallon, they would be averaging around $96 this month in Denver.
That’s a savings of about $35 compared to earlier this year. Prices in Colorado often are somewhat lower than the national average, but the difference right now is especially large.
Prices previously spiked at nearly $5 here and nationally in 2022, meaning they have fallen by half.
Bailey said that while regulatory costs and associated fees will continue to go up due to legislation, Colorado consumers are still benefiting at the pump.
GasBuddy’s head of petroleum analysis, Patrick De Haan said there seems to be a price war in southeast Denver between big-name companies like Murphy Express and QuikTrip.
According to GasBuddy stats, Murphy Express, Murphy USA and Maverik, among other name brand stations, are offering some of the cheapest gas throughout the metro area.
Notably, Denver leaders recently passed a law that could block the construction of many new gas stations, including some proposed by QuikTrip.
“Gas stations consume a large amount of land for the purposes of vehicle parking and maneuvering, and are known for low‐wage retail jobs,” a report from the city planning office stated. Gas-burning vehicles are also a top emitter of greenhouse gas.
Bailey noted that big-name stores, such as 7-Eleven, may still be locally owned. Bailey estimates that 60 to 65 percent of gas stations throughout the state are owned by Coloradans.
Still, he said that consolidation and regulation will continue to affect the market
“Only bigger companies have the wherewithal to sustain the regulatory burden. So regulation drives out small businesses, but regulation also helps environmental (causes) and some other things,” Bailey said. “So there's always a balance. But right now, consumers in Colorado are benefiting. Hopefully that helps everybody have a better holiday season.”
CPR’s Bazi Kanani contributed to this reporting
