Photo: Upupa4me (flickr)
Hoosiers can expect lower gas prices this summer compared to last year, according to a Purdue University professor and energy economist.
Professor Wally Tyner says the key reason is that fuel-efficient cars are decreasing the demand for gasoline.
“It means that there’s more income that can be spent on other things or saved, so it’s good for the economy,” he says.
But there has been a spike in gas prices recently. Tyner says that’s because of the refinery outages in Whiting and Illinois, which likely increased the price of gasoline by about 25 cents.
“If there is a refinery outage in a local area, that means the price is gonna spike temporally, and then it will come back down once the problem is fixed,” Tyner says.
Gas prices will likely be around between $3.50 and $3.90 a gallon this summer, which is lower than last summer when gas prices neared the $4 mark.