Gas prices hit record high

Kati O’Hare

Daily Press Writer

MONTROSE — Prices at the pump rose again Wednesday morning and broke yet another record high.

Today, on average, Coloradoans are paying $3.126 for a gallon of regular unleaded, which is a 15-cent increase from last week and 29 cents higher than two weeks ago, according to AAA’s fuel gauge report.

“It sucks, doesn’t it,” Gunnison resident Bill Young said, as he filled up his Suburban at Montrose’s Safeway pumps.

Unplanned outages at oil refineries are to blame for the increase, AAA spokesman Eric Escudero said.

One major outage was a fire in February at the Valero Energy Corp.’s Sunray, Texas refinery, which supplies the U.S. with 15 percent of its gasoline, he said. The refinery is running partial operations, but is still not delivering to Colorado as of Wednesday.

Escudero said other refineries in Wyoming, Oklahoma and Indiana have also experienced large problems.

Because of this, supplies have been down and demands are up. Some gas stations in Colorado Springs and Denver have even temporarily run out of gas at their pumps, Escudero said.

“It’s a result of supply and demand,” Golden resident Sandor Ringhoffer said while filling up his truck in Montrose. “It’s not the lack of oil, but the lack of old refinery capacity — a supply constraint. That’s what my oil biologist buddies tell me.”

But the U.S. Department of Energy did release some good news Wednesday — gas supplies increased for the first time in 13 weeks. “It’s a hug plus for motorist,” Escudero said. “Reports show refinery production is up.”

But that doesn’t mean prices will drop.

He said gas price increase this summer depends on three things: Whether the refineries restore production to normal levels; whether this is an active hurricane season; or there’s increase tension in the Middle East.

The Associated Press reported that escalating violence in Nigeria’s oil region could also drive prices higher. Wednesday, oil prices rose following the capture of four Americans workers in Nigeria, leading to supply worries in the market. But Escudero said this is always a factor, but not a main factor.

As far as record highs, Colorado has broke records every day this week. Overall, Colorado is the 11th most expensive state for gasoline in the nation. A week ago, it was 15th.

The increase is making travel expensive and one Montrose resident, Leanne Gettman, said she’s been walking a lot more.

“I walk to the store to try and conserve,” she said. “I don’t really go anywhere because of it (high prices).”

Escudero said there are a few tips for drivers that may save them a cent or more, but “every cent matters when gas prices are this high.”

He recommends that drivers check the pressure in their tires regularly, replace bad air filters and “get rid of the junk in the truck” that adds extra weight.

He said motorists may also see if their car is an E85 Flex-Fuel vehicle, meaning it can take unleaded or E85 gasoline. Vehicles that are Flex-Fuel will say so on the gas cap or in the owner’s manual.

There are about 20 stations throughout Colorado that have E85 pumps, he said, and prices are all over the board. But in Denver, Flex-Fuel drivers can get gas as low as $2.19 a gallon, but in Colorado Springs they’ll spend the average $3 or more. Motorists won’t get as good of gas mileage on E85, but if they can pay $1 less, it makes up for it, he said.

Escudero said AAA is not recommending it for drivers, but it is something to consider.

He did say that he doesn’t see prices reaching the $4 mark, like many people fear.

“That’s extremely unlikely,” he said, unless there is a new war that cuts off oil from the Middle East or a horrific hurricane season that wipes out the southern refineries.

“Unfortunately, the only consistency with gas prices in recent history is that it’s inconsistent,” Escudero said.

Contact Kati O’Hare via e-mail at katio@montrosepress.com