Colorado gasoline prices have not risen sharply after the EPA mandated sales of more expensive “reformulated gasoline” on the Front Range to fight ozone-causing emissions, despite warnings from Gov. Jared Polis and others that consumers would pay a big pollution-fighting surcharge.
Colorado’s average gasoline price was $3.41 a gallon Wednesday, according to AAA Colorado, up from $3.37 on Tuesday and $3.34 a week ago. Nationally, the average has bumped to $3.51 from $3.49, AAA regional spokesperson Skyler McKinley said.
Polis and others, in a futile effort to get the EPA to suspend reformulated gas rules, had pointed to predictions that RFG’s higher refining costs could push up Colorado prices by 50 cents or more a gallon. The EPA had said all along the impact would likely be only a few cents per gallon above normal prices, but said it would watch closely and offer Colorado a waiver if prices shot up.
“Context is key here,” McKinley said. “Colorado prices are on the rise, no question, but national prices are also on the rise. June was characterized by really stable and firm gas prices in Colorado.”
The EPA’s requirement for reformulated gas use during the summer ozone season began June 1, though agency officials believe the less-volatile blend was already being delivered to gas stations weeks before that.
Colorado gas was $3.33 a month ago, McKinley said, and much higher a year ago at $3.76. Two years ago, as state markets were still recovering from an early 2023 Suncor refinery shutdown because of a fire, gasoline was approaching $5 a gallon, he noted.
AAA expects gasoline to rise a few cents more a gallon Thursday and possibly after, as demand is boosted for a predicted busy travel market over the long Fourth of July weekend.
The regional office of the EPA said prices so far are proof the reformulated gas requirements can work.
“The minimal price impacts are in line with our expectations and reflect the fact that producers and suppliers had ample time to prepare for this requirement and deliver RFG in a cost-effective manner,” EPA spokesperson Richard Mylott said. “Variability in gasoline prices over the rest of the summer months will be related to the typical factors that affect supply and demand: travel around busy holidays; global, national or regional events affecting oil markets and refining capacity; hurricanes and weather events; and other factors.”
Meanwhile, Mylott said, the less-volatile gasoline formula “is reducing hundreds of tons of harmful ozone-forming emissions throughout the Denver Metro Northern Front Range nonattainment area this summer.”
The governor, for his part, “is thrilled that Colorado gas prices remain below the national average,” said spokesperson Eric Maruyama.
“The governor is happy that Coloradans have not seen an extreme price spike at the pump, but that does not change the fact that RFG could raise prices without providing Colorado with major air quality improvements,” he said, in an email. Colorado “continues to advocate for a waiver to remove the risk to ensure we continue to save money at the pump and better protect our air quality.”
The primary factor in gas prices, McKinley pointed out, is always the international price of a barrel of oil. Colorado’s modest rise recently, and the national increases, are likely reflecting that.
“Crude oil prices are on the rise. If we look at West Texas Intermediate crude, which is a great benchmark for crude oil in America, we are hitting highs that we haven’t seen since April,” McKinley said. “On June 4, crude was trading at about $73 a barrel. As of today, it’s trading at about $83.25.”
Colorado continues to suffer from toxic ground-level ozone in the nine-county northern Front Range area that the Environmental Protection Agency has declared in “severe” violation of Clean Air Act ozone limits.
When an area hits “severe,” the Clean Air Act requires all gas stations in that area to begin selling “reformulated” gas during the summer ozone season. EPA officials said the change can offer a small but important reduction in ozone precursors, at a time when Colorado is searching for other realistic ways to trim ozone.
Reformulated gas, according to the EPA, can cut back on ozone-causing emissions because it’s denser and doesn’t evaporate as quickly in hot weather.