In mid-April 2012 the price for a gallon of gasoline was just under $4.00. It slowly declined through mid 2014 to about $3.80 in the U.S. and Colorado. At that point it went into a freefall and closed the year at about $2.40 per gallon.
The Savings
• For 2014 the cost to purchase 15 gallons of gasoline per week in Colorado was $2,659 compared to $2,704 in 2013. In other words, the “savings” was $45 for the year.
• For 2014 the cost to purchase 15 gallons of gasoline per week in the U.S. was $2,696 compared to $2,788 in 2013. The savings was $92 for the year.
• For 2014, the cost to purchase 15 gallons of gasoline per week in Colorado was $37 less than the U.S.
The Good News – Lower gasoline prices may increase discretionary income for consumers. It may decrease the cost of other goods, if businesses pass along their savings for lower fuel costs. In Colorado, the thought of greater discretionary income may be nothing more than a dream for many as inflation, particularly for housing costs, has risen.
The Not So Good News – Typically, the impact of lower oil and gasoline prices on the state is negative. In other words, consumers will benefit; however, state coffers will not be as full because tax collections will be lower.
There is no free lunch!
