New Overseas Lockdowns Drop Demand For Gas Forcing Prices Lower

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STATEWIDE–Gas prices are expected to keep going down in the coming days, even though $3 per gallon gas is likely by this summer.

There has been an increase in coronavirus infections in Europe, which is decreasing demand and causing anxiety among experts in the oil and gas industry.

“We are also seeing some states, countries, as well as cities issue new lockdown orders over in Europe. That means a hit to demand. Oil prices are plummeting. They’re down by about 4.5%,” said Patrick DeHaan, head of petroleum analysis for GasBuddy.

Indiana is experiencing some of the lowest gas prices in the country.

“Indianapolis is about 25 cents ($2.64) under the national average ($2.88). The statewide average is a little bit higher ($2.68). Wholesale gasoline prices are also down. That means there is a slow decline, at least for now. Prices should be coming down at least through Thursday. That does not mean we aren’t going to hit $3 per gallon in the months ahead. It’s just a temporary break from the high prices we’ve been seeing, so enjoy it while it lasts,” said DeHaan.

DeHaan said if you “shop around” properly, you’ll be able to find some stations selling gas for less than $2.50.

With more coronavirus vaccines in the works, DeHaan said prices will likely go up as more people get vaccinated. Prices were abnormally low at times in March of 2020, but then they rose steadily as the situation with the pandemic improved.

“This really does coincide with COVID cases and vaccines play a big role in that,” said DeHaan.