INDIANAPOLIS — If you’ve filled up this week you’ve likely noticed higher prices at the gas pump. After a 14-week stretch of decreasing prices, fuel prices are going up again.
GasBuddy’s most recent numbers show an increase of around 30 cents per gallon in the last week.
“Essentially we see a continuation of what started happening last February with Russia’s invasion of Ukraine,” Nikos Zirogiannis, Assistant Professor of Environmental Economics & Policy at IU’s O’Neill School of Public and Environmental Affairs, said.
Zirogiannis said the ongoing embargo on Russian oil continues to significantly impact the global market.
“To the extent that those sanctions remain in place, it may take a while for markets to reach the equilibrium that they were in before the invasion started,” Zirogiannis said.
We asked why it seems gas prices are rising all of a sudden.
“It’s hard for oil markets to adjust in the short term,” Zirogiannis said. “If we want to boost oil supply, that means we will need to drill, either increase the oil we get from existing wells or start drilling new wells.”
In Indiana, AAA shows the average price per gallon is $3.92. In Carmel and northern Indy, we found prices as high as $4.09.
Experts say lawmakers can consider freezing or eliminating gas taxes, but with a lack of supply, that can make the problem worse.
“On the one hand we want affordable gas but on the other side given the constraints we have in the market, we don’t really want to pull that lever of eliminating gas taxes,” Zirogiannis said.
Experts said it’s impossible to know how long the price increases will last. And, as it makes landfall, Hurricane Ian could cause an additional temporary increase, Zirogiannis said.