Fuel Analyst Says Gas Prices Have Fallen From Last Month But Risen From Last Year

You may have noticed that gas prices have recently gone down. Though that is partially due to certain areas finally regaining stability after the recent natural disasters, it also has to do with the annual switch from summer fuel to winter fuel. Senior Petroleum Analyst Dan McTeague said that prices in Indiana have dropped on average around 15 cents from last month, when there was still speculation and concern over the amount of refineries damaged.

Though we may be experiencing lower gas prices than a month ago, compared to this time of year in 2016, we’re paying approximately twenty more cents. McTeague said there a few factors responsible for that difference.

“Some of that’s due to a higher valuation for crude which is about $5 or $6 a barrel more.” He explained, “The other factor of course, is that gasoline demand continues to be pretty impressive, right across America.

Fuel supplies from regions unaffected by the hurricanes had to be filtered into the areas where supplies were lost. This has led to an increase in demand in those areas where no storms occurred.

McTeague added that while regular fuel prices will continue to decrease as temperatures drop, the cost for diesel fuel will actually go up. This is due to the fact that diesel is sometimes used as proxy for soil and other things.

As winter comes on diesel prices rise with the removal of crops and end-of-the-year farming endeavors. He said just in the last month and a half diesel prices have been raised about twenty cents. He wanted to make sure to mention the difference since there will be many drivers who utilize diesel in our agricultural communities.

To view the specific gas prices for your area, click here.