DENVER (KDVR) — It’s early yet, but national trends do predict Denver’s gasoline prices will respond to Suncor’s temporary shutdown.
Suncor’s refinery in Commerce City is expected to stay closed for months, possibly through March. The Canadian petroleum company announced the closure after a Dec. 24 fire at the refinery hurt two workers.
No one event alone determines what will happen with gas prices, particularly at the local or statewide level. However, large events such as Suncor’s shutdown that restrict gas supply have been tied to notable price hikes in several U.S. states in the latter half of 2022.
Prices climbed in each of these states’ major cities, according to GasBuddy records.
In September, refineries in Washington and California closed for maintenance. Nevada gets most of its gas from California, so prices responded. A gallon of gasoline cost nearly 75 cents more on Oct. 5 than on Sep. 1.
Similarly, Phoenix gas comes largely from California. Temporary closures led to gas rising more than a dollar per gallon.
Outside the western U.S., prices rose in response to an emergency shutdown more similar to the Suncor situation. A fire at a Whiting, Indiana BP station caused a temporary shutdown. Michigan, which draws a large amount of gas from this facility, saw prices increase 50 cents.
Denver’s gas supply is less dependent on West Coast gas, which insulated it from the price increases seen in other western markets. In the same time, its prices stayed comparatively flat.