COLORADO SPRINGS, Colo. (KOAA) — Drivers in Colorado Springs could see gas prices edge lower later this week, but another jump above $4 per gallon on average could happen quickly if oil prices rebound, according to a GasBuddy analyst. While drivers see some stations selling gas below $4 this week, a station across I-25 may be selling it for more than $4.
Patrick De Haan, head of petroleum analysis at GasBuddy, said Colorado's recent price swings are part of a common pattern known as "price cycling," in which many gas stations raise prices at the same time before gradually undercutting one another over several days.
GasBuddy's weekly data showed Colorado Springs gas prices rose about 8 cents per gallon from the previous Sunday-to-Sunday reporting period after a significant increase last Monday pushed prices back above $4 per gallon.
Since then, however, prices have fallen across the city, only to see another slight increase Tuesday morning. On Tuesday, there were prices ranging from $3.53 to $4.29 across the city with no apparent rhyme or reason based on location.
De Haan says stations often lower prices a few cents each day in an effort to compete for customers until profit margins become too thin.
"They undercut, they undercut, they undercut," De Haan explained. "At some point, as soon as the price of oil jumps up, a lot of those stations will have no more room to undercut unless they sell below their cost."
That could trigger another round of price increases later this week if crude oil prices rise, he said.
While crude oil prices fell sharply Monday, De Haan said gasoline prices have not dropped as quickly because of disruptions in refining capacity.
"The reason for that disconnect is because you can have all the oil in the world, but if there aren't enough refineries online processing that oil, that's the disconnect," he added.
He pointed to recent Ukrainian drone attacks on Russian oil refineries as one factor limiting global refining capacity and keeping gasoline and diesel prices elevated despite lower crude oil prices.
For consumers looking to save money, De Haan recommends comparing prices before filling up and combining discounts whenever possible. He said drivers can use the GasBuddy app to locate the lowest-priced stations nearby, then stack those savings with grocery rewards programs, gas station loyalty programs and promotional discounts. For more on stacking savings, click here for a list of fuel rewards programs and credit card offers.
"If you add it all up, I've been able to save 57 cents a gallon off of what that retail price is," De Haan said when explaining how he stacks savings.
He also encouraged motorists to take advantage of limited-time promotions and practice fuel-efficient driving habits to stretch each tank of gas.
Price differences within the same city can sometimes exceed 20 to 50 cents per gallon, De Haan said, because aggressive retailers often launch localized price wars that nearby competitors match while stations farther away do not.
"Shopping around is always so important," he stated. "A lot of these stations know that Americans love the cheapest gas they can find."
He said those localized price wars are rarely sustainable but can offer significant savings for drivers willing to compare prices before filling up.
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You are asked to reach out to the Colorado Springs Police Department and reference online tracking number 26006588 if you have any information regarding the incident.
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