INDIANAPOLIS — There is good news for Hoosiers looking to travel for vacation. Gas prices are on the decline in Indiana.
“The fall we are seeing related to gas prices has a lot to do with the price of oil,” said Lisa Wall, senior manager of Communications with AAA Hoosier Motor Club. “The price of oil continues to decline, which is helping offset the increase in demand seen around Fourth of July holiday.”
Over the last 30 days, Gas Buddy has seen a drop of $.50 per gallon, which is good for the second highest drop in the nation behind Florida. Despite the help at the pump, the state remains $.05 above the national average. AAA says that may be due to the state’s gas tax. Indiana has the 14th highest in the country. There may be other factors as well, including the sky high gas prices in and around Chicago.
“Our overall average is $4.68 right now, but we are rolling in Chicago area cities that are a part of Indiana, so that is definitely going to impact our average,” explained Walls. “If you look at the price in the metro around Gary, it’s up in the $4.70s, so that is likely impacting our overall average as a state too.”
Logistics play a factor as well. Economists say most of the oil comes from the Gulf, and transportation costs can play a role in higher prices. Currently the Gulf Coast states have some areas with gas under $4.
“A lot of the gasoline production is on the south coast Louisiana,” explained Steven Russell, an economics professor at IUPUI. “If somehow transportation cost are driving up gas prices, it would hit us worse than places closer to the locations where the gas is produced.”
AAA says we are heading into one of the busiest travel seasons of the year. Despite the lofty gas prices, they notice people are continuing to travel and vacation at an extremely high rate.