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With summer comes costly gas
In advance of one of the busiest travel times of the year, motorists in the Grand Valley are paying more at the pump than they have in nearly five years. Analysts predict the higher gas prices will linger throughout the summer but not rise.
According to Colorado AAA, unleaded gas in the area costs an average of $2.95 per gallon, up 11 percent from $2.65 a month ago and up 23 percent from $2.40 a year ago. Prices haven't been this high in Grand Junction since October 2014.
According to the Oil Price Information Service, a firm that tracks and analyzes global petroleum trends, prices typically peak around May 15, then fall between 10 and 15 percent by June. The service predicts that gas prices will not rise significantly higher than they are now.
Colorado AAA spokesman Skyler McKinley agrees.
"I don't think we're re-entering the age of expensive gas. Prices right now are not out of bounds compared to past summers; they're just spiking faster," he said.
McKinley said price increases are being driven by high levels of demand for fuel, caused by high consumer confidence and a relatively stable economy.
Jeff Hazelhurst, a salesman at Modern Classic Motors, isn't worried about higher gas prices.
"I've been in the auto industry for 35 years now, and it's business as usual here," Hazelhurst said. "Many customers here in Grand Junction work in the oil fields. Higher gas prices mean more money for them."
Data published by AAA and the Colorado Department of Revenue from 2008 to 2015 shows that as gas prices rose and fell, auto sales in Mesa County remained largely unchanged.
McKinley cautions that while higher prices are driven primarily by demand, supply factors could potentially further increase fuel costs, especially if an active hurricane season causes gulf oil refineries to shut down.
"In that scenario, we could see especially steep prices," McKinley said.
Escalations in conflicts abroad, like those in Israel, Palestine, Iran and Venezuela, could also have dramatic effects on prices.
