What's going on with gas prices?

November 28th, 2008 at 10:03pm Post Staff 43

Colorado motorists are paying an average of $1.81 per gallon, a full $2.28 lower than the year’s peak of $4.09 on July 16 and the lowest prices Colorado has seen since February of 2005. The statistics reported by the American Automobile Association’s (AAA) Weekly Fuel Gauge Report indicated that the average price per gallon of regular unleaded dropped 25 cents in one week.

We’ve been given no satisfactory explanation for this phenomenon. What’s your theory? Here’s your chance to weigh in and tell us what you think is going on.

Quick questionnaire:

1. Why were gas prices so high last summer?
2. Did your driving habits change due to the higher prices?
3. Why are gas prices so low now?
4. Did your driving habits change due to lower prices?
5. Where do you think gas prices are headed?

Entry Filed under: Transportation, Aspen, Business

3 Comments Add your own

1. Adam_R | December 3rd, 2008 at 5:17 pm

1. This needs no complex answer. It is simple economics: supply and demand. High demand + low supply = high prices.
2. Yes. I carpooled and rode the bus into Aspen 5 days a week so I could afford to drive to my girlfriend in Denver on the weekend.
3. Also simple economics. Consumers started using alternative means to get around. Demand went down and supply went up.
4. Nope. I want to keep the prices low.
5. If everyone paid attention and kept conserving fuel, demand would stay low and so would prices. However, I'm not convinced Joe Consumer recognizes this, and the 'vicious cycle' will continue.
2. infowars.com | December 5th, 2008 at 9:12 am

Ive lived here over 20 years and the highest prices of gas in the country has always been Vail, Glenwood, and Aspen.

Last week, gas was 60 cents cheaper in Grand Junction and Denver then it was in Glenwood and 35 cents cheaper in Rifle and Silt.

Somethings rotten in Denmark, errrr Tthe Golden Triangle."
3. Mitch Mulhall | December 5th, 2008 at 11:45 am

1. Certainly the principle of supply and demand affected gas prices last summer, but there's more to it: hurricane season, "summer vacation", highway construction season... all these and more factor into higher summertime gas prices.

2. Of course.

3. Gas prices are lower now due mainly to a sluggish U.S. economy. People are mitigating cost of living, and transportation is the biggest leach on the paycheck. Last weekend OPEC deferred a decision to reduce production. Since Monday, the price of a barrel of light crude has dropped almost $14 and is on the cusp of dropping into the $39 range, a level not seen since December, 2004. If OPEC decides to reduce production, the price of oil will rise. If I had to guess, I'd say OPEC will maintain current production until sometime this spring, prior to Memorial Day.

4. I certainly like paying less for gas, but I'm not going to start driving more because it's cheaper.

5. As long as gasoline remains the principal fuel for consumer transportation in the U.S., oil prices will rise, maybe not in the short term, but future oil prices--perhaps as early as next July--will make $145 per barrel seem like a bargain.