Unrest in Egypt is to blame for rising gas prices, according to GasBuddy.com Senior Petroleum Analyst Patrick DeHaan, who says the market is nervous violent protests could spread to other parts of the Middle East. He cites Energy Information Administration data that indicates crude oil inventories have dropped by six percent or 20 million barrels in the last two weeks. DeHaan adds higher crude oil prices in July are being passed on to consumers at the pumps. He says many retailers in Indiana have raised regular unleaded to $3.75 a gallon and adds prices may continue to climb next week.
Gas Prices to Increase Slightly
Price of Gas Continues to Fall, But For How Long?
The retail price of gasoline throughout the state of Indiana continues to decline at a rapid pace, having dropped from an average of $4.20 on June 6 to $3.57 on June 25, but how long can we expect these prices to continue to fall? According to Patrick DeHaan, senior petroleum analyst at GasBuddy.com, prices should continue to drop for a few weeks, but he said with hurricane season approaching, weather could become a problem.
Drivers Ecstatic to See Gas Prices Declining
Finally, some relief is to be had at the pumps as drivers gas up. The average price in Indiana has fallen from $4.20 on June 6 to $4.08 on Wednesday, a breath of fresh air despite the fact that the state’s average remains 45 cents higher than the national average. Fortunately, according to GasBuddy.com’s Senior Petroleum Analyst Patrick DeHaan, those prices will keep falling.
“Exxon Mobile’s facility in Joliet, Ill., has come back online and that’s meant a lot of downward pressure on wholesale prices, which will then, in turn, mean a big drop at the pump here in the next week,” said DeHaan.
Gas Prices Up Nearly 30 Cents Since Early May
Motorists are still gritting their teeth as they head to the pumps, dealing with a spike in gasoline prices that has brought the Indiana average up to $3.98 per gallon – 35 cents higher than the national average of $3.63. Patrick DeHaan, senior petroleum analyst at GasBuddy.com, said a refinery glitch that resulted in lower production is likely to blame.
DeHaan explained that the glitch caused the affected refinery in the Great Lakes region to slow its production and forced it to purchase gasoline on the market to cover its contractual obligations.
Expert Says Gas Prices Spiked Due to Three Major Factors
Gas prices have spiked this week throughout Indiana, having gone from a state average of $3.34 on Jan. 27 to $3.56 on Wednesday. Patrick DeHaan with GasBuddy.com told WKVI that the spike could be attributed to three major factors including refinery maintenance, rising crude oil prices, and the idea that the economy is improving.
DeHaan said that the cost of crude oil was around $85 in early December, but has since raised to $98 per barrel – a 14 percent jump, DeHaan said, and it’s defintely not helping. He said the rising cost of crude oil is due in part to a newly-opened pipeline that allows accumulated oil inventory to be sent out toward other parts of the country, raising the demand.
No Impact on Gas Prices Expected From Fiscal Cliff Negotiations… Yet
Now that Congress has passed legislation to avoid the fiscal cliff, many people are breathing a sigh of relief, but many others are asking the age-old question: what does this mean for gas prices?
Patrick DeHaan, senior petroleum analyst for GasBuddy.Com, said there have been some rumors and small talk about a possible increase to the federal gas tax, but nothing solid has been presented at this point. However, he said just the fact that the talk is up in the air may be grounds for some concern, as this may be a sign of whats to come over the next few years as politicians continue to search for new sources of revenue.
Gas Prices Up Six Cents Over Last Week; Expect Drops Toward Winter
With gas prices up roughly six cents over last week in Indiana, GasBuddy.com Senior Petroleum Analyst Gregg Laskoski attributes the rise in prices to problems in California and overseas. He said there is a lot of problems around the country, but the biggest problems at the moment exist in California.
The state is seeing some significant supply problems because of two refineries that have been out of commission: one refinery lost power, and one suffered from a fire. That, on top of a pipeline problem, has pushed the state of California to record-high prices of $4.59 per gallon. Laskoski explained that Los Angeles has been hit even worse, with prices as high as $4.70 per gallon.
Gas Prices Rising Across State, Experts Hopeful For Drop Toward Holidays
Gas prices are once again on the rise across Indiana, and GasBuddy.com Senior Petroleum Analyst Patrick DeHaan says it’s nothing unexpected. Since midnight yesterday across the state, prices have risen at least $0.02 per gallon as some stations report prices of $3.99 and up. The average price of gas in the Knox area is $3.99 while the average price in La Porte is $4.19 per gallon.
DeHaan explained that gas prices in smaller areas such as Knox, Winamac, Culver, and La Porte are hard to predict, but larger metro areas such as Fort Wayne, South Bend, and Indianapolis are enduring gasoline spikes of several cents per gallon. Fortunately, DeHaan says this is only temporary; as the holidays approach, gas prices tend to decrease.
Gas Prices Spiking – But It’s Temporary
Gas prices in Indiana are once again on the rise, but this time it seems to be only affecting the Great Lakes region. The average price of gas in Indiana has risen to $3.83 per gallon, while the national average is only up slightly at $3.55.
According to GasBuddy.com Senior Petroleum Analyst Patrick DeHaan, this regional increase is due to a number of issues plaguing the Great Lakes oil industry.
Average Gas Prices Dip Slightly
The national average for gas prices is falling slightly, according to GasBuddy.com. At the beginning of April, the national average was around $3.90, but today it has dropped to $3.86. Indiana’s average is only a cent higher at $3.87.
The lowest gas prices currently reported in Indiana are in Martinsville, where regular gas can be found for $3.65. One of the highest prices is in Valparaiso, where regular gas can be found for $4.35 per gallon.
While gas prices may be dropping a bit now, it’s sure to be only a matter of time before they spike again. Remember, to save on fuel mileage, avoid high speeds, don’t accelerate or brake hard, keep those tires inflated, use your air-conditioning sparingly, and keep the windows closed. Be sure to keep your vehicle maintained, use your cruise control where you can, avoid heavy loads that increase weight on the vehicle, avoid long idles, and if you are purchasing a new vehicle, be sure to check the vehicle’s fuel economy.
Gas Prices Jump Again
After a decrease of almost $.10 in some cases earlier this week, gas prices jumped back up to $3.99 by Wednesday.
Gas prices were $3.99 in Knox and around $3.89 in North Judson yesterday. The average price in Indiana yesterday was $4.00 a gallon while the national average was $3.86.
Gasbuddy.com offers these gas saving tips: Avoid high speeds, do not accelerate or brake hard, keep tires properly inflated, use your air conditioner sparingly, keep windows closed, service your vehicle regularly, use cruise control, avoid long idles and if it’s time for a new vehicle, consider a fuel efficient one.
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