COLORADO GASOLINE PRICES AVERAGE BELOW $2.00
Denver, January 12 – The statewide average price for a gallon of regular unleaded gasoline in Colorado has dropped below $2.00, reaching $1.97. This price is $1.25 lower than the same day last year. Colorado is one of the top ten states that have experienced the largest year over year savings in gasoline.
The dramatic slide in retail gas prices has been driven by a similar plummet in global crude oil prices since the end of the summer. This decline in the price of oil has been a product of weak demand combined with abundant supply. While lower gas prices are certainly a welcome relief for consumers, the broad impact of sustained low oil prices are front of mind for many industry stakeholders. In countries like the United States where the cost of oil extraction is more expensive, producers may be forced to reassess their plans to factor in profit margins that are sharply lower or even reversed as markets continue to register multi-year lows. Additionally, countries that rely heavily on oil revenues to fund government services may find themselves in situations where reductions to social programs are necessary, which could lead to civil unrest. Either of these dynamics has the potential to put upward pressure on prices.
The global price of crude has lost more than half its value since mid-2014. OPEC has reiterated that it will not intervene in the market to force prices higher and plans to sustain its current production levels, with the earliest possibility for supply reductions reportedly pushed to their next meeting scheduled for June. Sustained low prices for crude can also potentially influence the way global markets are assessed.
AAA Colorado has more than 600,000 members and is an advocate for safety and security for all travelers. As North America’s largest motoring and leisure travel organization, AAA provides over 54 million members with travel, insurance, financial and automotive related services, as well as member exclusive savings.