STATEWIDE–There is a 45% chance Indiana could have a gas station selling gas for less than $1 per gallon, according to GasBuddy.
“Gas prices have spent virtually all of March marching lower, with the drop continuing as the coronavirus destroys oil demand globally, leading to the lowest oil prices we’ve seen in 18 years. I don’t think I’ve ever seen such a collapse in prices, even including the Great Recession. What we’re witnessing is easily going to go down as the great collapse in oil demand,” says Patrick DeHaan, head of petroleum analysis for GasBuddy.
Part of why that percentage is only 45% is the taxes in Indiana.
“Indianapolis and Indiana taxes are a little bit higher than some of your neighbors like Michigan and Ohio. That’s still an imprecise number,” says DeHaan.
DeHaan echoed the advice of health experts and urges you to practice social distancing and stay at home. If you do have to travel, however, he urges you to wait to fill up your gas tank.
“Prices will continue to keep going down. If you do need to fill up, shop around and don’t overpay,” says DeHaan.
The cheapest gas in the state is in Merrillville where it’s $1.29. In Indianapolis, the average is $1.82, but it’s still easier to find stations selling it for $1.50 or less.
Gas stations are passing along the drop several weeks behind.
“Stations are selling through their pricier inventory and then refueling with lower-priced inventory. Then after that, they pass the decrease on a little bit slower depending on the competition. Stations are doing very well right now by passing those decreases on a little bit slower than what they’re facing themselves,” says DeHaan.
But that won’t continue to be the case if demand continues to drop, which DeHaan believes will continue to happen.
“Average prices in Indiana could drop another 50 cents per gallon, maybe even more than that. That could put stations closer to that 99 cents per gallon figure,” says DeHaan.