Gas prices are jumping as optimism around vaccines heading into the summer months sparks increased demand for fuel.
In Colorado, gasoline prices at the pumps hit an average of $2.90 per gallon on March 24, according to AAA. That’s up from $2.54 a week ago, and $2.06 a year ago, the data show. It’s the highest statewide since the summer of 2018. Nationally, the average price-per-gallon is at $2.87, up from $2.10 a year ago.
Energy prices plunged as people stopped driving and traveling abroad during the pandemic. Now, that trend is reversing due to multiple factors, according to Skyler McKinley, the regional director for public affairs with AAA Colorado.
Overseas producers cut back in an attempt to bolster prices, while at the same time, people are getting more comfortable taking road trips and getting on planes, he said. Additionally, some people are commuting again, McKinley said.
Prices will become less volatile when supply catches up with demand, McKinley said.
“We’re pretty confident prices are going to stabilize,” he said.