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Price war forces gas prices below $2 on road south of Denver

Gas prices have been dropping ever since a Quik Trip opened on Arapahoe Road.

GREENWOOD VILLAGE, Colo. — The gas price war on a stretch of road south of Denver is getting pretty intense. 

A photo shared on X (formerly Twitter) on Saturday showed a gallon of regular unleaded at a station on Arapahoe Road west of Interstate 25 going for $1.74 a gallon.

And that's not even the lowest price on that street. Another station just down the road offered gas for just $1.72.

That's $1.61 below the Colorado average of $3.33 per gallon.

The price war has been going on since a Quik Trip station moved in at the corner of Arapahoe Road and Syracuse Street. As the Quik Trip lowered its prices, the three other stations along the mile stretch of the road did as well.

Skyler McKinley with AAA Colorado previously told 9NEWS that price wars like this one often happen when new stations move in.

“These new operators can come in and sell fuel fundamentally at a loss because they weren't making that much money off it to begin with in order to change consumer behavior and make folks aware that that station exists,” McKinley said.

The aim is to get people inside the convenience store, where the real money is made. McKinley said 80% of gas stations around the U.S. have a convenience store attached. Industry estimates have found about 44% of people who stop to buy gas will make a trip inside the gas station’s store. About a third of them will buy something. 

McKinley said gas price wars typically don't last for long. 

“Historically, when these price competitions happen, they don't go on for years. It's not sustainable,” McKinley said. 

You can find gas price information at GasBuddy or AAA.

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