Colorado gas prices fall to less than $3.50 a gallon

Photo: Gas prices pumpThe average price per gallon for gasoline in Colorado has fallen 10 cents in the last week and plunged by 25 cents in the past month. reports the state average was $3.37 a gallon on Thursday. Some Denver area stations are below $3 a gallon.

An analyst for the website says gas prices are falling because of slumping demand, booming oil production in the U.S., and a return to cheaper winter blends.

"We've witnessed a remarkable drop in crude oil and wholesale gasoline prices, with fears of a global crude oil price war supplanting worries about threatened Middle East oil exports," says GasBuddy senior petroleum analyst Patrick DeHaan.

He also has a word of caution for consumers.

"During times of big decreases, we've noticed some stations pass on the decreases much faster than others," DeHaan says. "Smart motorists can find the stations dropping faster by shopping around for the cheapest gas prices."

Despite falling prices, Colorado's state average is still about 11 cents higher than the national average.