Indiana News

After Sharp Drop, Gas Prices Going Back Up

7/3/2013

If you're still looking for gas that's below three dollars per gallon, keep looking.  Prices across much of the state have started going back up.

Listen to Ray Steele's interview with Patrick DeHaan of GasBuddy.com:

After spiking to 4.29 per gallon just over a month ago due to refinery problems in the Midwest, the price of unleaded dropped as low as 2.90 in parts of Central Indiana Monday and Tuesday.  By the end of the day Tuesday, many stations had raised their prices by at least 20 cents or more.  "Oil prices are coming close to touching $100 a barrell, something they haven't done in quite some time," said Patrick DeHaan, senior petroleum analyst at GasBuddy.com.  "I know it's a holiday and a lot of folks believe prices go up just for the holiday, but even outside of holidays, gas prices go up and down."

Some bullishness on what some see as a true economic recovery is one reason for the higher price of oil.  "The Dow Jones (Industrial Average) has been up signficantly.  Other commodities have followed the Dow Jones up, and oil is one of those commodities," said DeHaan, adding that if the economy is truly recovering, oil and gas prices will not drop significantly.  "If more people are back at work, they are commuting.  They're using gas.  They may be taking vacations.  A solid economy means higher gasoline consumption."

DeHaan does expect prices to stabilize over the rest of the week.  "By July 4th weekend - the 5th, the 6th and the 7th - prices may have come down a dime or so from where they are today."

@WIBC_RaySteele

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