Tue March 13, 2012

Gasoline Prices Lowest in Denver

The average price for a gallon of regular unleaded gasoline is at $3.81 according to the Lundberg survey. Denver has the cheapest prices at $3.36 a gallon. 

Mark Larson with the Colorado Wyoming Petroleum Marketing Association says it’s not uncommon for Denver to have lower than average gasoline prices. He says that’s because most gas companies don’t have refineries in Denver where they can store the product until demand increases and prices rise.

“With those pipelines trying to dump fuel into what is called a demand destruction economy, the demand is down, crude is readily available and we are able to benefit from the prices," he says.

He says a lack of refineries isn’t always beneficial. He says without them, gasoline companies can easily market their product to other cities in search of more money.

“The pipelines won’t be sending that refined product to us for a lower price they will be sending that product to other markets that need it more for a higher price," he says.

Larson says that can create a fuel shortage in Denver and increase prices.Nationallyfuel prices have risen by about $0.12 in the past two weeks according to the Lundberg Survey. Los Angeles has the highest gas prices at $4.35 a gallon.