Why This Colorado City Has Some Of The Cheapest Gas In The Country

America is suffering from the rising costs of living, with many struggling to afford groceries, housing, and healthcare. With the holidays around the corner, there's been a bit of relief in a rather unexpected package — gas prices. The cost of fuel is down to the lowest levels seen in four years, according to GasBuddy, and the average price for a gallon is below $3, hovering at $2.89 as of early December 2025. Lucky drivers in Colorado, however, are seeing prices drop even lower.

If it feels odd that gas prices are going down while so many other things are getting more and more expensive, you're not alone, but there is an explanation. Experts are crediting completed refinery maintenance, increased output, and record-low oil prices for the relief we're all feeling at the pump. Even in California, which boasts the highest gas prices in the country, prices are hovering at around $4.41 per gallon. Some of the cheapest gas in the country, on the other hand, can be found in a rather unexpected place — a few states east, in Denver, Colorado and surrounding areas.

The average price of a gallon of gas in the Centennial State is $2.47 at the time of writing, but the Denver area is seeing rock bottom prices. There are several reasons why, including economics and its prime location. But unless you live nearby, experts still say saving a few cents isn't worth an extra drive.

If you never thought you'd see a gallon of gas priced below $2 again, well, you were wrong, at least in Colorado! At the time of writing, several gas stations with Denver addresses, including a Shell and a QuikTrip on Evans Ave that are just down the road from each other, are selling gas for $1.67 a gallon, even beating the local Sam's Club. But how, and why?

Drivers can partly thank our friendly neighbors to the north. Colorado's major supplier is an in-state refinery called Suncor, and it's been buying bargain-priced oil from Canada that cannot be exported, so it's refined and sold locally. Prices are also down because OPEC is flooding the market with oil, but there are other local factors at play in Colorado. Local brands such as Maverick and QuikTrip, and even larger companies like Buc-ee's, are competing for customers, lowering prices in a bid to get people in the door and buying more than just fuel.

You benefit if you live locally, but AAA told local ABC affiliate Denver7 News not to drive out of your way simply to save a few cents. Even if you'd be saving ten, twenty, or fifty cents per gallon, the wear-and-tear that comes simply from driving your vehicle is estimated at around $0.58 per mile. You're not really saving any money if you drive outside of your normal route for gas; you're just spending it differently, and you can still find cheap gas in other parts of the country.