Memorial Day travelers will find this weekend’s gas prices hard to forget.
In Colorado, the average price of unleaded gasoline jumped another 3 cents Saturday and hit a record $3.87 a gallon, according to AAA’s Daily Fuel Gauge Report. Premium gas and diesel also increased several cents to $4.33 and $4.62, respectively.
Several gas stations in the metro area are selling gas at $3.99, just shy of the $4 benchmark. That milestone has already been passed in some parts of the state: The AAA on Saturday reported an average price of $4.20 in Vail and $4.11 in Glenwood Springs, and a gas station owner in Telluride said the town’s two stations were charging $4.25 per gallon.
“Usually gas prices will peak out around Memorial Day, and hopefully that trend will hold true this year,” said Eric Escudero, spokesman for AAA Colorado. “But this year has been different. Until the price of oil recedes, you won’t see the price of gas decrease.”
Gene Wilson, owner of Bonnie Brae Conoco on South University Boulevard, is frustrated by the changing and increasing price of gas. Customers sometimes complain by asking why he has raised his prices. As of Saturday, Wilson posted unleaded gas at $3.99 a gallon.
“That’s what it is,” he said. “I’m getting upset about it too. It’s not my fault.”
Price of oil soars
Other gas stations with posted prices of $3.99 for regular unleaded gas include the Shamrock at 1455 S. Colorado Blvd., and Conoco stations at 4880 Federal Blvd., 9171 E. Arapahoe Road, 4601 S. Santa Fe Drive and 5950 S. Holly St.
“It’s tough to say if the average will hit $4,” Escudero said. “The No. 1 factor that is influencing gas prices is the price of oil. Oil makes up approximately 75 percent of the price of gasoline.”
Oil hit a record $134 a barrel last week.
Experts are divided on how high prices will go, with some saying this is a bubble and gas prices will fall, while others, including oilman T. Boone Pickens, say the price will hit $150 a barrel or higher.
Gas stations in outlying areas and mountain towns have recorded the highest prices because it costs more to transport the fuel, there is less competition and the real estate for gas operators there may be more expensive than in the metro area.
Despite the spiking price of gas, according to AAA, nearly the same number of people, 9.148 million in the western U.S., were expected to travel 50 miles or more away from home this weekend. The figures are off by 0.01 percent from 2007, when 9.155 million traveled during Memorial Day weekend.
Operating costs
Friday, the Transportation Department reported that in March people drove 11 billion fewer miles than in March of 2007, a 4.3 percent decrease.
The increased price of gas coupled with already staggering credit-card transaction fees has created a pain for the small gasoline operators behind the pumps.
For Wilson, credit-card fees account for 10.97 cents per gallon of regular-unleaded gas paid for with a credit card. Credit-card purchases account for more than 75 percent of gas buys, he said.
After the fees and the price he pays for gas, Wilson makes 7 cents a gallon on unleaded self-serve paid for with a credit card. Those who pay cash double the margin for the station.
“We are just a small, independent shop, so maybe we do pay more for gas,” Wilson said. “This is where I’m at; I can’t afford to lower it. The little guys selling it on this end are not the ones making money.”
Elizabeth Aguilera: 303-954-1372 or eaguilera@denverpost.com
