Gas prices drop below $2 in parts of Colorado ahead of Thanksgiving travel

Colorado drivers are getting an unexpected break at the pump as millions prepare to hit the road for Thanksgiving. Gas stations in parts of Denver and Aurora dropped regular unleaded to as low as $1.85 on Tuesday.  Prices are drawing lines of people eager to take advantage.

AAA expects 74 million Americans to travel by car this holiday, making Thanksgiving the busiest road-trip period of the year. Skyler McKinley with AAA says Colorado drivers are getting noticeably cheaper fuel at exactly the right moment.

"Prices are falling across the country, but dramatically so in Colorado," McKinley said. "We're sitting at about $2.60 statewide, down nine cents on the week and about 30 cents on the month and year."

McKinley says several factors collided at once. 

West Texas Intermediate crude is trading around $58 per barrel, pushed down by steady global production and soft seasonal demand.

Outside of holiday travel, people simply drive less in late fall. 

The Denver metro area is also out of ozone season, meaning stations no longer have to use reformulated gas, which normally adds about 15 cents per gallon. Stations have switched to winter-blend gasoline, which is also about 15 cents cheaper than summer blend.

"Just compared to summer, we're already expected to be 30 cents cheaper," McKinley said. "What's notable is we're down another 30 cents from last winter, too."

He expects prices to keep sliding through the winter, but doesn't expect -- or want -- them to fall forever.

"I think they'll continue to fall and then stay relatively stable into spring," he said. "They're not going to fall off a cliff, and honestly, you don't want that. Gas prices are downstream of the broader economy."

The eye-catching $1.85 signs popping up aren't a mistake, and they're not bad gas, either.

McKinley says gas stations make very little on fuel itself, typically only about 7% margin. Some even sell at a loss to get drivers into the store.

"Gas is the only thing with a giant flashing billboard telling you the price," McKinley said. "If a station undercuts the guy across the street, you're going to see it. The real money is in the soda, chips, cigarettes - not the gas."

For drivers worried about quality, McKinley recommends looking for Top Tier gasoline, a detergent-rich blend many major brands sell.

McKinley says the cheapest fuel is usually found at Costco, Sam's and busy neighborhood stations with lots of competition. 

According to GasBuddy reports on Tuesday evening:

Murphy Express – $1.85
2290 S. Parker Rd

Murphy USA – $1.85
2160 S. Havana St.

Costco – $1.89
1471 S. Havana St.

Sam's Club – $1.89
880 S. Abilene St.

Murphy Express – $1.85
4990 E. Evans Ave.

QuikTrip – $1.85
6477 E. Evans Ave.

Murphy Express – $1.99
7101 Tower Rd.