Gas prices reached $4.99 a gallon on Monday at several gas stations in metro Denver, reported, and costs could rise again as people prepare for trips over the Memorial Day weekend.
The lowest price reported in the Denver area was $4.29 in Littleton in the morning.
“But even that station’s likely to go up here soon,” said Patrick De Haan, head of petroleum analysis at GasBuddy, an app that helps drivers find the cheapest gas.
The highest price for gas on Monday in Colorado was $5.39 in Carbondale, De Haan said.
The Memorial Day weekend could add to the increases, according to GasBuddy.
De Haan attributed the string of $4.99 prices across the metro area to a tendency to follow the leader, both when prices go up and start dropping again.
The search for the best deals has gotten more challenging since the U.S.-Israeli war against Iran started Feb. 28. Oil prices began surging and exceeding $100 a barrel when Iran blocked the Strait of Hormuz. About 20% of the world’s global oil supply flows through the strait.
Oil prices have increased as fighting and threats of more strikes have intensified and have dropped when negotiations and proposed agreements are announced.
“Oil markets don’t like turmoil, and turmoil raises risk,” said De Haan.
A recent temporary shutdown caused by a power outage at the Suncor Energy oil refinery in Commerce City also helped nudge up prices, De Haan said. Suncor is the only refinery in Colorado.
The lowest gas price on Sunday in the Denver area was $4.05 per gallon and the most expensive was $4.99, according to GasBuddy. The lowest price in the state was $3.99 a gallon while the highest was $6.29.
While steep, De Haan said $6.29 is about $2 below the highest prices in the country.
Average gasoline prices in Denver have risen 35.3 cents a gallon in the last week, according to GasBuddy’s survey of 844 stations. Prices in Denver are 80.6 cents higher than a month ago and $1.59 a gallon higher than a year ago, GasBuddy said.
Colorado AAA said the average price for a gallon of regular unleaded gas in the state is $4.66, spokesman Skyler McKinley said.
“It is climbing. I anticipate tomorrow we’ll see a pretty steady jump up” ahead of the Memorial Day weekend, McKinley said.
McKinley recommended that people worried about gas prices should fill up before they head to the mountains.
“If you’re headed out for Memorial Day, you’re always going to find the best prices, the most competitive prices on the Front Range where there’s a ton of competition,” he said.
McKinley said drivers should avoid filling up on Interstate 70 or U.S. 285 if they can. “You’ll generally find cheaper prices at service stations that aren’t immediately adjacent to the highway.”
Asked about concerns over price-gouging, McKinley said, “Anyone who thinks that price-gouging is going on should walk into a convenience store at a gas station and ask how the margins work. Gas is a low-margin item.”
The Colorado Better Business Bureau said in an email that it has received only a handful of customer reviews and complaints about gas stations, but not necessarily regarding gas prices.
Oil companies have reported higher profits since the Iran war started. British oil giant BP said it more than doubled its profits in the first three months of this year over last year, TotalEnergies, based in Paris, raised its dividends and doubled its share buybacks after announcing $5.4 billion in net profits for the first quarter.
