Demand for gasoline is going up across the country. Gas prices are too.
Refineries have slowed production over the last month.
“They have done so to the degree that gasoline inventories declined last week. That was fairly surprising given that, in the weeks prior to that, gasoline inventories were surging. That’s part of what is behind increase here,” says Patrick DeHaan, head of petroleum analysis for GasBuddy.
DeHaan says prices will see the biggest increase in the lower-priced states. DeHaan says Indiana is one of those states.
“The Great Lakes region saw some of the lowest prices in the country. Michigan, Indiana, Ohio, Illinois, and Wisconsin. Those were the states that were ultra-low. Those ultra-low prices are gone. Indianapolis is still under the national average by about 20 cents per gallon,” says DeHaan.
It will be a while, however, before stations are selling gas for $2 per gallon.
“I would say that will be the case for at least the next few weeks, perhaps into Memorial Day weekend. We’ll have to see. Keep in mind, it’s still quite a bit lower than where it is normally,” says DeHaan.
DeHaan says he’ll be watching what oil refineries do next.
“I think, for now, it’s really the story of will refineries start to increase production now that we are starting to see demand go up? If they do increase production, that would limit how prices go. If they don’t, that’s going to lead to more price increases,” says DeHaan.
As of Monday, the average price for gas across Indiana is $1.60 per gallon. In May 2019, the average in Indiana was $2.95.
