INDIANAPOLIS, Ind. — Bad news for drivers: analysts say it could be years before drivers see significantly lower gas prices. Experts point to relaxed COVID-19 restrictions and the ongoing Russian war as the biggest drivers of higher costs.
“I think most Americans would be happy now with paying somewhere in the upper $2 range or even the low $3 range,” Patrick De Haan, Head of Petroleum Analysis with GasBuddy, said. “I don’t think we’re going to get back to that territory for potentially a couple of years.”
De Haan explained Hoosiers are feeling the effects of global situations in their own neighborhoods.
“Global demand has been going up for crude oil and now at the same time, we’re taking Russia’s oil out of the global market and there’s nothing to replace it,” De Haan said. “That’s why the price of oil’s been going up.”
De Haan notes the price of oil is the key factor in the price at the pump.
“If we’re lucky, there may be days a couple of stations could be, you know, $3.75, maybe as low as $3.50,” De Haan said. “But if things worsen, if there’s a refinery issue or escalation with Russia, it’s not impossible we could head even more north, $4.50 or even beyond that.”
Fortunately, we don’t notice much of a swing in prices at the pump.
“Over the course of one to two weeks, you’ll see stations lower their prices slowly until the point where the station’s losing money,” De Haan said. “That’s when one of them raises prices way up then the other follows.”
High gas prices are the bad news. But the good news is, the city has a program in place to help ease the burden.
“All residents have to do is just download the Lyft app,” Milele Kennedy, Director of the Division of Community Nutrition & Food Policy with the City of Indianapolis, said.
All Marion County residents can take part in the Lyft Grocery Access program which offers eight $1 one-way rides to and from the grocery store. You just have to type in the code FEEDINDY.
“It renews automatically every month,” Kennedy said.
Kennedy said they are coordinating around 12,000 rides each month and expect that number to grow.
“It has been continuously going up month by month,” Kennedy said. “We do think that that’s correlating with gas prices.”