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Why the Cold is Helping Drive Up Indy Gas Prices

More cold, more demand for heat and heating products.

STATE WIDE--You're paying about 15 cents more for gas in Indiana than the national average today, says The extreme cold could be partly to blame, and so could some of the highest oil prices in quite a while.

The state average was a $2.64 this morning. That's about 28 cents higher than this time last year.

The national average was $2.48.

"It's mostly a happy New Year as gas prices remain in the low-to-mid $2 per gallon range, but it's not quite as happy as could be as it's the priciest start to a New Year since 2014," said Patrick DeHaan, head of petroleum analysis for GasBuddy. 

"2017 wrapped up a fairly tame year, but keep in mind oil prices are among the highest we've witnessed in over two years, and we're in the middle of a severe cold snap, one which is likely to drive up demand for heating oil, propane and other petroleum products, which is certainly a bullish start to the year."

He said GasBuddy's 2018 Annual Fuel Outlook, being released tomorrow morning, will give you a good look at what to expect in the year ahead. 

"In looking at our own report card from our 2017 Fuel Outlook, we had forecast a yearly average gas price of $2.49 per gallon, and were less than 10 cents away from hitting it head on. Anyone who's got a tank to fill- whether gas or diesel- will want to stay in the know for what's coming in the year ahead," said DeHaan.

In Ft. Wayne the average gas price is up 14 cents from last week, now at $2.65.

In Indianapolis it's up nearly 8 cents, at $2.64.

PHOTO: Chris Davis/Emmis

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