DENVER —Colorado's only oil refinery was forced to shut down Christmas Eve, sparking fears of gasoline and diesel shortages and a spike in prices. Prices are climbing but so far there is no shortage of fuel.
The shutdown was due to extreme weather that caused major damage to Suncor Energy's Commerce City plant, which supplies 35 to 40 percent of the state's usage. Because of the shutdown, two fires erupted, injuring two employees, and pollutants were released into the neighborhood. Tests showed no health hazard. Company management said repairs are not expected to be completed until late March.
Not only is Suncor a major provider of what Colorado gas stations sell, it supplies a third of what Denver International Airport relies on to operate.
"It leaves an elephant-size gap in the supply market," said Grier Bailey, executive director of the Colorado/Wyoming Petroleum Marketers Association. He was predicting more yellow bags on pumps as some stations shut them to preserve vital fuel for fire departments, hospitals and other essential services.
Bailey credited Governor Jared Polis for acting quickly, reaching out to other state suppliers to assist and issuing an emergency order allowing fuel transporters to carry heavier loads and work more hours to increase efficiency.
Bailey said while other suppliers are trying to fill the gap by diverting fuel from other markets that solution is not sustainable on a long-term basis.
And there is a limit to how much can come through the pipelines. "They are only so big and you can only push so much fuel through them."
By mid-January the average cost of a gallon of unleaded in Colorado had jumped 33 cents from the month before, although some of that was due to continued high demand, industry sources said.
Bailey said the effect on gasoline stations will be somewhat different for branded versus unbranded outlets. "If they are a Sinclair, ConocoPhillips or Shell those will be slightly better off than unbranded partners."
Ken Wilson, whose family-owned Conoco has operated for eighty years in Denver, hasn't seen any break. He said his station costs had risen 77 cents a gallon since December. "That goes on to the consumer. We all have to raise our prices."
DENVER —Since January convenience stores and other retailers have been required to charge ten cents for every plastic bag requested by a customer.
The charge is due to a new law, The Plastic Pollution Reduction Act. Next year a total ban on plastic will be in effect. Paper bags still will be allowed but the ten-cent fee will continue.
Governmental entities will be allowed to charge even more for plastic this year and some cities signaled an intention to do so.
Even farmers who operate roadside markets must comply.
To get customers accustomed to the change, the City of Lakewood launched a one-time Earth Day offer of free reusable bags.
The bag charge comes on top of a 27-cent fee stores must now apply for delivery.
DENVER —Governor Jared Polis has refused to eliminate or further delay a two-cent increase in the state's gasoline tax.
The increase had been scheduled to take effect last year but Polis delayed it because of rising inflation. It will start July 1.
Polis said the money is needed for items already approved in the state budget.
DENVER —Convenience stores and service stations shouldered another burden as a paid family leave program took effect in January. Both Colorado employers and employees have started contributing to the new program. It will eventually provide the state's residents with wage replacement benefits during life circumstances that will pull them away from their jobs. Benefits will not be available until 2024 so the fund can be built up.
While deductions began in January, employers will not be required to pass the money on to the state until April.
Some small employers are welcoming it as a tool to recruit people. Others see it as just creating more expense and bookwork.
BOULDER —The Cigarette Store dba Smoker Friendly has expanded in Indiana and Kentucky.
The Colorado Company has acquired thirty stores in those states from Collett Enterprises of Seymour Ind.
Three stores already were operated under the Smoker Friendly name as licensees.
"I am very happy and proud that Daren Collett looked to our firm, team and family as the best place to entrust the great stores he and his team built," said Smoker Friendly CEO Terry Gallagher Jr.
The acquisition is Smoker Friendly's sixth in two years, bringing the total store count to 290 locations in thirteen states. In August it acquired seventy-nine stores spread across Arkansas, Tennessee, Mississippi, Missouri, and Kentucky.
DENVER —Take 5 Car Wash has 17 new gasoline stations in Colorado.
The locations are in the greater Denver area, western Colorado, and Colorado Springs.
The carwashes use the Pro5 five-step process and include a ceramic shield formula with UV protection and a Tire Shine formula.
GRAND JUNCTION —A couple from Poland has opened a convenience store catering to lovers of European delicacies.
The Euromart restricts its offerings to products from Europe and focuses on food that can't be bought anywhere else in western Colorado.
Agasta and Lukasz Dziwisz came to Colorado on a visit in 2003 and found themselves liking it so much they have stayed on, raising their children here.
The customer response to the new store has been just what they hoped for, they said.
WHEAT RIDGE —Veshraj Lamichhane, owner of a Valero gas station and convenience store, was shot and killed by a robber last month.
The killer took off in the businessman's car but he was caught the next day in Indiana, still driving the vehicle. State troopers said he led them on a 90-mile-per-hour chase that only ended when he lost control and rolled the car into a field. He was uninjured.
He faces charges including murder and stealing a motor vehicle.
The victim was a 53-year-old father of four from Nepal, the sole breadwinner for his family. The Rocky Mountain Friends of Nepal have set up a Go-Fund-Me page to help.
Originally published in the February 2023 issue of the O&A Marketing News.
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