INDIANAPOLIS — Gas prices remained at nearly $3.00 per gallon in Indiana Wednesday, up from an average of $2.87 just one week ago and $2.76 this time last month.
But experts say it has nothing to do with the shutdown of the Colonial gas pipeline, which has caused supply problems across the southeastern United States.
"Gas is still being churned out, especially here in the Midwest,” said Patrick DeHaan, head of petroleum analysis at GasBuddy. “That’s why it’s not going to impact prices very much here.”
DeHaan said there are other reasons for the price hike in Indiana.
“This is (part of) a COVID-19 recovery,” he said.
This time last year, with everyone staying home at the height of the pandemic, DeHaan said demand for gasoline plummeted and oil companies cut back production significantly.
“And so oil production is much lower today than it was a year ago,” he said.
At the same time, demand for gas is increasing as more Americans get vaccinated, COVID restrictions are lifted and people begin to travel again.
“We have pent-up demand for travel and we are hitting the road,” said Jeanette McGee, spokesperson for AAA. “So that demand has increased and therefore that's why we're seeing more expensive gas prices in the last month.”