Gas Prices Predicted To Keep Going Down

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STATEWIDE–Gas prices are “nearly guaranteed” to keep falling, says GasBuddy.

There are a couple of reasons for that says Patrick DeHaan, Head of Petroleum Analysis for GasBuddy.

“A lot of the reason is we’ll switch back to cheaper winter gasoline in two weeks. That will be a big factor, but demand also tends to cool off this time of year,” DeHaan said.

He also said it will likely be a bumpy road.

“We could continue to see prices spike up, but eventually they’ll go lower and lower. Those hike increases will, then, also go lower and lower,” DeHaan continued.

A lot of that has to do with price cycling, where gas stations keep undercutting each other until the prices get so low that stations start losing money, which prompts them to make prices higher.

“It’s not impossible that, here in the next month, we could actually see the first stations in Indianapolis going under $2 per gallon, but that’s not likely to be a price that will stick around very long,” DeHaan said.

The statewide average for gas is $2.42, which is down about six cents from this time last week. The average in Indianapolis is $2.40. In Fort Wayne, it’s $2.37.

DeHaan said Hurricane Dorian will not have an impact on gas prices because it is not affecting any refineries across the country.

 

photo: octaviolopez on morguefile