You’re paying about 33 cents less per gallon to fill up your gas tank in Indiana than you were a month ago, according to AAA. One gas analyst believes you could be paying even less in the coming months.
“When it comes to gas prices, it’s all good news for now. Gasoline prices are likely to continue dropping here as we get into the Fall, that is through October, November,” says Patrick De Haan, Head of Petroleum Analysis with GasBuddy.com.
“Oil prices are the primary culprit. Oil prices have been trading below the $70 barrel mark. That’s because of economic concerns, not only in the U.S., as our economy slows down, but overseas in China, where their economy has been faltering. So, it’s a sign of a little bit of economic distress. It’s not all bad news, but that, combined with an increase in U.S. oil production over the last couple of years, has pushed gas prices back closer to where they normally would be,” he says.
Even though people often say that gas prices get lower during an election season, De Haan says that’s not the case.
“This has nothing to do with the election and everything to do with other events that happen every year. That is, the weather gets colder. Americans don’t drive as much in the fall. Gas prices fall in the Fall every year, regardless of whether there’s an election or not, just as how gas prices go up in the spring. So, I suppose if you wanted to change the narrative, if the election moved in the spring, well, then you’d always see gas prices going up because of the seasonality. Americans start to drive more in the warmer weather,” says De Haan.
“We also switch blends of gasoline. That is helping us right now, as we’ve already made the change in Wisconsin back to a cheaper type of gasoline that’s in use during the winter months. As I mentioned, as air temperatures are cooling off, Americans aren’t driving as much, and that decrease in demand is why gas prices progressively fall through the autumn. So, all of this has nothing to do with the election and everything to do with something just as simple as this season’s changing,” says De Haan.
He adds that gas and diesel prices often go in opposite directions based on the time of year.
“When it comes to gasoline and diesel, there is a bit of a disconnect because traditionally, gasoline prices are higher in the summer. They fall off in the winter. As I mentioned, diesel prices have been declining, but as we get closer to the start of winter, I do expect diesel will start modestly inching up. That’s because diesel and heating oil are essentially the same product, and as you get into colder weather, heating oil demand goes up, so that will eventually cause diesel to go up.”
The average price for diesel fuel across Indiana is $3.70 a gallon, a drop of 15 cents since last month according to AAA.
Sources: GasBuddy.com, AAA, NAFB News Service
