Why Gas Prices Are Falling in Indiana
STATEWIDE–Gas prices have been dropping lately across Indiana and that trend is expected to continue for the near future as long as there are no issues with refineries.
For example, GasBuddy says the average price for gas in Indianapolis as of Tuesday afternoon was $2.81 per gallon.
“That’s down 16 cents in the last week alone. It’s also almost 25 cents lower than where it was a month ago,” said Patrick DeHaan, head of petroleum analysis for GasBuddy.
The BP refinery in northwest Indiana has had its fair share of issues in the past, but DeHaan says that refinery being functional and efficient is helping prices stay lower in the Hoosier state.
DeHaan says diesel prices are also seeing some relief.
“Indiana’s average for diesel had jumped over $4 per gallon. The good news is now with that BP refinery back online, the price of diesel is starting to decline. If you’re filling up a big rig or going camping, something like that, it’s important to know about those lower diesel prices,” said DeHaan.
Gas prices also go through what’s called a price cycle. DeHaan thinks most gas stations will go through another two price cycles before Christmas.
“Think of price cycling as an intense game of undercutting. Competitors always want to have the lowest price. They undercut each other every day by a penny or two and will often lower their prices by 20 to 40 cents over a seven day period, but when retailers have no more room to cut prices, they restore them. That’s where they cycle comes in. They raise prices and restore their profit margin,” said DeHaan.
DeHaan says most of Indiana should stay under the $3 per gallon mark as long as there are no further refinery issues.
Why Gas Prices Are Falling in Indiana was originally published on wibc.com
