Fuel prices are going up all over Colorado, with rising gas prices making for a more expensive commute and higher propane prices a bigger home heating bill.
Vance Feast, a Montezuma County farmer who uses propane to heat water on his property, said this year’s price hike was higher than he expected.
“I don’t have the money to pay $400 to fill up a tank,” he said.
“Maybe (propane companies) should have signs out front advertising the prices, like the gas stations do.”
According to the U.S. Energy Information Administration, propane prices in Colorado were at about $2.12 per gallon on Dec. 19. That’s higher than last winter’s prices, which never reached $2, but not as high as in 2014 when they soared to $3.50 because of a propane shortage. Patrick DeHaan, senior petroleum analyst for GasBuddy.com, said he expects propane prices to rise soon as a result of the global oil situation, but he couldn’t give a specific prediction.
In the past month, gasoline prices have risen an average of 15 cents across the state, DeHaan said in a telephone interview. Southwest Colorado experienced similar price hikes, raising the cost of gas above the Colorado average. Prices are expected to continue rising as 2017 begins.
Gas prices in the Durango area have spiked in recent weeks and surpassed the state average of about $2.18. Prices hovered this week between $2.22 and $2.26 at Durango stations, according to Gasbuddy.com. Bayfield prices were slightly higher at $2.29 at the Conoco and Shell gas stations.
On Tuesday, gasoline prices in Cortez were between $2.21 and $2.35 per gallon. In Dolores they were a bit higher, ranging from $2.27 to $2.39, while the Cox Conoco station in Mancos was listing prices at $2.24 per gallon. In comparison, the statewide average for that day was about $2.15 per gallon, and the national average was $2.29.
DeHaan told The Journal that a cold winter in the northeastern U.S., where most people rely on petroleum for heat, could have a “minor impact” on heavy oil products, such as diesel. But the nationwide rise in regular gas prices mainly stems from a Nov. 30 decision by the Organization of the Petroleum Exporting Countries to cap oil production, starting Jan. 1, to drive up declining oil prices. The price of crude oil has been rising all month in anticipation of the production cuts.
“For the last two years, supply has usually outpaced demand,” DeHaan said. “OPEC’s decision was basically to balance the market.”
In Colorado, gas currently costs about 20 cents more than it did last year, and DeHaan predicted it will rise another 20 to 25 cents in 2017. He estimated motorists in the state will spend about $120 more on gas next year. But in the near future, he expects prices to rise during the next week, as gas prices catch up to the increased price of oil, then taper off for some time.
Help with heat
For those who struggle to afford propane to heat their homes in the winter, the Colorado Low-income Energy Assistance Program accepts applications from Nov. 1 to April 30.
Legal Colorado residents making 165 percent of the federal poverty index or less (about $1,600 per month for a single person) can qualify for assistance with their heating bills, with the amount of aid depending on the size of the household and cost of heating.
To get assistance from LEAP, call 1-866-432-8435. To find out more about the program and how it works in Montezuma County, call 719-633-9098 or go to sites.google.com/a/state.co.us/cdhs-leap.
