Page added on April 27, 2007
Denver is seeing a severe crunch in gasoline supply, and pump prices likely will top $3 a gallon in the coming days, industry sources said.
Oil refinery problems in Texas and Oklahoma – which supply Colorado with gasoline through pipelines – are the root cause of the shortage. And the situation is being exacerbated by rising demand ahead of the busy summer driving season.
Pump prices could move toward $4 a gallon this summer if an event such as a severe hurricane or political crisis in an oil-producing nation further squeezes already tight gasoline supplies, analysts said.
“There is no gas in Denver,” said Bryant Gimlin, energy risk manager at Fort Lupton-based Gray Oil Co., a wholesale distributor of gasoline and diesel. “The situation here is worse than how it was after Hurricane Katrina.”
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