Here’s what's leading to higher gas prices plus when they could come back down
SOUTH BEND, Ind. -- According to Patrick De Haan, Head of Petroleum Analysis with GasBuddy, the average price for a gallon of gas in South Bend sat at $4.83 as of Monday afternoon. He says that’s up 78 cents from just last week.
Much of that increase is due to refining issues in the region, according to De Haan, after few refinery issues popped up last week throughout the Midwest.
This, after he says oil prices jumped 8 percent at the start of last week, related to the situation in the Strait of Hormuz.
De Haan says improving refinery issues could lead to some relief at the pump after refineries in both Indiana and Illinois experienced disruptions.
“Once those issues get resolved, I'm hopeful that prices should have some downward momentum, even if the situation with the Strait worsens dramatically. I would estimate that of what we're paying about 50 to 60 cents a gallon right now is related to the refining issues,” said De Haan. “So, we may see prices drop this week, so long as there aren't new issues, but the longer the Strait remains closed, the longer these $4 prices could stick around. It could worsen as we get closer to the start of summer.”
De Haan says Indiana is the 10th most expensive state in the country to fill up.
He says currently, Illinois, Ohio, Michigan and Indiana are all in a similar situation with prices around $4.90 a gallon on average.
Drivers in other states are experiencing prices above that, closer to five dollars, while a gallon of regular in California costs more than six dollars a gallon.
“Washington, Hawaii, Oregon, Nevada, Alaska, all paying above $5. Below that, the Midwest, the Great Lake states are next. So, Indiana is quite a bit above the national average of $4.45 a gallon today. But the good news is I do expect a modest, slight dip in prices, maybe by five or 10 cents over the next couple of days,” said De Haan.
De Haan says the situation is volatile, meaning gas prices could spike higher again if there are new refinery issues in our region.
It's not just gasoline prices skyrocketing, though. Michigan recently set a record for diesel prices, according to De Haan. He says diesel prices in the Hoosier state are about seven cents a gallon away from a record high.
De Haan says Indiana diesel prices are above six dollars a gallon, too. The impacts of refinery issues are far-reaching, even beyond jet fuel, gas, or diesel prices.
“Certainly, these numbers are going to be problematic for the economy in the months ahead, because from farmers, you know, to semis to trains, all of the US economy really runs on diesel, and this is going to be a problem that will trickle down to what you're spending virtually everywhere, from the hardware store to the grocery store, you know, to going to the mall, goods you buy online, all of that is going to be impacted down the road,” said De Haan.