DISQUS

Leslie Robinson · 3 years ago

The More Natural Gas Drilled, the Higher the Gasoline Prices Great. Gas prices in the mountains are already among the highest in the state, if not the nation (excluding CA and NY). Vail was at $3.37 gallon on Friday and climbing. In comparison, Grand Junction jumped up from $3.03 on Friday to around $3.14 a gallon by the weekend. Rifle and Parachute prices at the pump were at $3.25 gallon yesterday, but are surely to be increased today with the pipeline news (you'd think we were importing gas from Vail.)

If you drive around in Rifle, there are at least nine different gas stations and all have the same price for regular. Price fixing? No, there is a lack of wholesale competition in a "captured" market. Some distributors even own competing brands of gas stations in this area, which is 60 miles away from Grand Junction--a competitive market.

At one point two weeks ago, Grand Junction's average gas prices were 20 cents lower per gallon than Rifle stations. Seems ironic that the oil and gas drillers in Rifle and Parachute are the captured market and are targeted to pay some of the highest gasoline prices in the West.
Andrew Oh-Willeke · 3 years ago

An updated of the Denver Post story linked says this morning that oil prices could rise $10 a barrel, which implies a retail gasoline price hike on the order of 50 cents a gallon.
Andrew Oh-Willeke · 3 years ago

A fix could take weeks or months says the Rocky.