How global and state factors impact prices at the pump

SOUTH BEND, Ind. -- Iran’s Foreign Minister said, "safe passage through the Strait of Hormuz will be possible via coordination with Iran's Armed Forces and with due consideration of technical limitations."

On Wednesday, oil prices plummeted, according to Patrick De Haan, in hopes the ceasefire would reopen the Strait.

“Nothing necessarily changed, but it offered hope oil prices react based on every piece of information at the moment that they get it,” said De Haan.

De Haan says most gas stations in South Bend started the week around 4.19 for a gallon of gas. Since then, prices have trickled down, with the average price in South Bend now around $4.12. He says that’s down two cents since midnight, but still up about 18 cents compared to a week ago.

GasBuddy gas price maps and photos taken by ABC57’s Jordan Tolbert show a range of gas prices around Michiana, some above four dollars, some below.

De Haan says yesterday, oil prices plummeted 15 percent and wholesale gasoline prices went down 30 cents.

So there’s a reason one station may be selling gas at a higher price than another down the road.

“What you're seeing play out is the reality that there's a huge difference between the oil market yesterday and the day before. Oil markets yesterday plummeted, and now yesterday the gas tax holiday rolled around. So as a motorist, you should be paying attention, but also realizing the station that may be charging $4.11 isn't gouging. They paid a lot more for that gasoline than a retailer that's selling at $3.69 a gallon today, and the station's got to figure out a way to pass along the cost, because stations can't stay in business if they lose money,” said De Haan.

He says typically, there’s only a variation of about a couple of cents a gallon, station to station, and says gas stations are going through some challenging times.

Indiana Governor Mike Braun addressed high gas prices in the Hoosier state, declaring a ‘gas tax holiday’ for gasoline.

This suspends the 7-percent usage tax for at least thirty days.

Governor Braun said in a press conference that the pause was “effective immediately, subject to the logistics of getting it out there.”

Patrick De Haan says you won’t notice prices just plummet all of a sudden, but says this could help push prices below the four-dollar-a-gallon mark for the next 30 days or so.

State officials will re-evaluate the holiday after 30 days. Braun also said the state will monitor retailers to ensure Hoosiers save at the pump, calling on the Attorney General to enforce price gouging protections.