Colorado Gas Prices Fall 33 Cents in One Week

Gasoline prices in Colorado dropped 33 cents per gallon in a single week, bringing the statewide average down to $3.83. AAA reported this Tuesday that the national average simultaneously fell to $3.98. The sharp decline marks a reversal from the late October peak, when drivers faced higher costs.

AAA spokesperson Mark Jenkins stated that consumers are now paying approximately $9 less for a full tank than they did at the fall peak. The primary driver of this drop is the cost of crude oil, which has fallen about 11 percent since late October. Oil prices now stand at roughly $90 a barrel. Jenkins noted that crude oil costs influence about half of the final price at the pump.

Seasonal demand shifts are also contributing to the lower prices. With the busy summer driving season over, refineries have begun blending fuel for winter. This winter blend is cheaper to produce than the summer mix. Additionally, easing tensions in the Iran conflict and the conclusion of hurricane season have reduced pressure on global oil supplies.

Jenkins explained that the conflict with Iran previously drove Colorado gas prices to a 2026 high of $4.78 per gallon. He said that conflict was instrumental in causing the state average to spike earlier in the year. As the situation stabilizes, those price pressures have receded.

AAA expects prices to remain low throughout the winter months. Historically, pump prices begin to climb again in the spring and summer as driving demand increases. For now, the combination of lower oil costs and reduced demand has created a temporary reprieve for Colorado drivers.