Gas prices dipped in Northwest Indiana last week after crude oil prices plunged to a new low for 2023, falling by as much as 20 cents a gallon on average in LaPorte County.
But economists who closely track the energy market warn that declining gas prices could be short-lived.
The average price of gas in Indiana is $3.38 per gallon, down from $3.46 a week earlier, according to AAA. Gas prices also fell 6 cents to $3.69 a gallon in Illinois, or 80 cents less per gallon than what drivers paid a year ago.
Gas prices dipped slightly as a result of a 17% plunge in crude oil prices worldwide but they have since gained back some of that ground, increasing by 4% over the past week. AAA said gas prices could dip a little more this week before leveling out next week or even inching higher.
The national average for a gallon of gas stayed static at $3.43 last week, according to AAA. GasBuddy reported a 0.3 cent drop to $3.40 a gallon.
Intermediate crude oil prices rose 90 cents to $70.16 per barrel last year. Brent crude oil rose 91 cents to $75.90 a barrel.
Domestic oil production grew to 12.3 million barrels, an increase of 1.1 million barrels, according to the Energy Information Administration. Gasoline output, however, dropped by 6.4 million barrels as refineries like the BP Whiting Refinery purged winter gasoline before switching to the spring blend.
The cost of fueling one’s ride is 81 cents a gallon less than a year ago, when gas cost an average of $4.24 a gallon, according to AAA.
As of Monday, gas cost an average of $3.42 a gallon in Lake County, $3.40 a gallon in Porter County and $3.29 per gallon in LaPorte County, according to GasBuddy.com. The average price of gas was about $3.41 in Newton and Pulaski counties, $3.30 in Jasper County and $3.52 in Starke County.
Over the past week, gas prices fell by 7 cents in Lake County, 12 cents a gallon in Porter and 20 cents a gallon in LaPorte County.
Gas prices in the greater Chicago metropolitan area averaged $3.84 per gallon, including an average of $4.08 within city limits, according to AAA.
An estimated two-thirds of adults in the United States told AAA they have adjusted their driving habits since the Russian invasion of Ukraine sent gas prices soaring worldwide last February, prompting most countries to impose sanctions against one of the world's largest oil exporters.
“The national average price of gasoline has seen little overall change over the last week, with big decreases in states like Colorado and Ohio offset by large increases in Arizona and North Carolina. While more states saw declines than increases, any downward trends are still likely to be temporary and not necessarily long-lasting,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “While Colorado’s refinery issues are largely moving into the rearview mirror, challenges making the transition to summer gasoline in Arizona are leading to tight supply and accelerating prices. Motorists in some areas may be on the receiving end of good news, while others may not as we hit the second half of refinery maintenance season. You never know what the closing moments will look like, and motorists could be in for a dramatic ride if issues develop.”
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