STATEWIDE–Gas prices are likely to reach $3 per gallon in Indiana soon, according to GasBuddy.
That price increase could come as early as Wednesday or later this week. Recently, prices went up in states surrounding Indiana like Michigan and Ohio.
“It’s really just a matter of time for this to happen,” said Patrick DeHaan, head of petroleum analysis for GasBuddy. “The overall big story is that COVID-19 improvements across the country have spurred gasoline demand higher. Last week, we saw a jump in demand by about 3%. That’s the second best weekly demand we’ve had since the pandemic started. That is just behind the week of Easter, which coincided with spring break. I could see it going to $2.99 soon.”
As temperatures continue to warm up, DeHaan says people will want to take summer vacations and hit the road, which will only drive up demand. That means prices will likely trend higher. A surge in coronavirus, however, could change all of that.
“An uptick in COVID cases could limit or eventually lead to lower oil and gas prices,” said DeHaan.
Oil prices are increasing after Tuesday’s announcement that U.S. crude inventories fell a lot more than expected. International benchmark Brent crude is up 87 cents per barrel, to $69.75 and West Texas Intermediate crude is up 77 cents, to $66.46 per barrel.
According to the National Tank Truck Carriers, the industry’s trade group, roughly 20 to 25% of tank trucks in the fleet are parked heading into this summer due to a lack of qualified drivers. DeHaan said any possible gas shortages would be primarily in very remote areas.
“Gas shouldn’t be any harder to find in Indy this summer,” said DeHaan.
LISTEN: Full Interview with Patrick DeHaan