COLORADO SPRINGS, Colo. (KOAA) — Colorado diesel prices have climbed to a record $6.31 per gallon on average, as refinery maintenance and global supply disruptions push fuel costs higher, according to GasBuddy.
On Tuesday, News5 saw several stations with diesel prices more than $6.50 in the Colorado Springs area, including one priced at $6.79.
Patrick De Haan, GasBuddy’s head of petroleum analysis, said the state’s average diesel price has surpassed previous records, including a high of $5.66 set earlier this year and $5.53 in 2022. The latest spike comes as diesel supplies remain tight both in the United States and overseas. De Haan said seasonal refinery maintenance following the summer driving season is contributing to price volatility in Colorado, where the market is particularly vulnerable to supply disruptions.
Colorado has only one oil refinery, meaning maintenance or other disruptions can have an outsized impact on the state’s fuel supply and prices.
“It's just all about refineries right now and not enough diesel supply,” De Haan explained.
Global conflicts are adding to the pressure. Ukrainian attacks on Russian refineries have affected diesel supplies, while disruptions involving the Strait of Hormuz and reduced exports from Chinese refineries have further constrained the global market, De Haan said.
Although President Donald Trump recently announced a potential deal involving Russian fuel supplies, De Haan said it is unclear whether Russia can provide additional diesel. He noted that Russia has restricted diesel exports since July amid supply challenges.
The United States already exports about 1.5 million barrels of excess diesel per day, according to De Haan, raising questions about whether a potential deal with Russia would significantly increase the amount of fuel available globally.
Colorado's efforts to ease prices
Colorado Gov. Jared Polis recently signed an executive order intended to provide relief from high fuel prices by allowing certain changes involving dyed diesel and transportation requirements. Dyed diesel is typically reserved for off-road uses, such as farming and construction, where it receives different tax treatment. Allowing its use on public roads under specified conditions could offer some tax-related relief, De Haan said, but it would not increase the overall supply of diesel. He also cautioned that truckers traveling across state lines could face complications if neighboring states have different rules governing dyed diesel.
“The biggest problem here is none of these levers are meaningfully adding diesel supply to the global market,” De Haan added.
More price increases possible
De Haan said he does not expect meaningful short-term relief unless global supply conditions improve.
Diesel is also used as heating oil, particularly in parts of the northeastern United States where natural gas is not available. As temperatures drop, increased demand for heating oil could put additional pressure on diesel supplies. If winter weather is especially cold, De Haan said diesel prices could approach $7 per gallon in some areas. He said the outlook will depend largely on refinery operations, global fuel supplies and geopolitical tensions involving Russia, Ukraine and Iran.
Click here for more on fuel rewards programs in Colorado to save at the pump.
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