Indiana Gas Prices Drop Despite Iran Tensions
STATEWIDE — Recent announcements from President Trump regarding an Iranian blockade are sparking fears of higher gas prices, and GasBuddy’s Head of Petroleum Analysis Patrick DeHaan gave advice on Monday for Indiana drivers.
He says Hoosiers should wait a few days before filling up their gas tanks.
“It looks like (higher prices) are probably in the future, especially across Indiana where gas prices have dropped about 13 cents a gallon,” DeHaan said. “Part of the drop in the gas prices in Indiana may give retailers more room to lower prices before they have to restore them because Indiana’s use tax on gasoline has been waived for the time being. That is going to save drivers about 17 cents a gallon. For now, I don’t necessarily see that Indiana will be at risk of jumping up because of that use tax going down.”
DeHaan explains what it would take for the current tax relief to lose its impact.
“There’s still plenty of room for prices to go down,” DeHaan said. “Prices probably could drop another 10 to 20 cents a gallon before retailers really start to be up against the wall and have to raise prices. The use tax gives stations a lot more room to lower prices before we have to see another cycle. The next time they cycle, we may not see that $4.00 mark that we saw last week when prices jumped to 4.19.”
DeHaan says when Indiana jumped to $4.19, Ohio jumped to $3.99. He expects Indiana to follow Ohio’s downward trend for now, but he is advising everyone to keep an eye on the war in Iran and the situation on oil prices.
“If Iran attacks the United States and the U.S. responds, then that could set oil prices much higher,” DeHaan said. “It’s really all about escalation and how much that continues or if the U.S. can be successful and blocking the Strait without any escalation from Iran.”
Unless oil prices suddenly surge past the $105 mark later this week, Hoosiers are likely to escape the next few days without the “price cycle” jump seen in states like Utah or Florida. With the tax holiday in place, there is still plenty of room for those numbers to go down before the situation forces them back up.
