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Average gas prices in Monroe County above $4 Monday

By Phyllis Cha

Posted March 7, 2022

gas pumps

Gas prices in Indiana have passed $4 a gallon for regular. According to AAA the average price per gallon in Monroe County Monday was $4.01, a 62-cent increase from last month.  

Kelley School of Business in Indianapolis faculty member Kyle Anderson said a few factors play into rising gasoline prices.  

“Consumption of gas is just up by a lot and U.S. consumers want to buy more gas to travel more,” Anderson said. 

One reason for this is more people are traveling as the pandemic hits a different phase. In the past few days, though, Anderson said the sharp increase can be attributed to the war in Ukraine.  

Any disruption in one area of the world or region causes prices to increase globally, due to the global nature of the oil market. Anderson said the Russian invasion and sanctions because of it have spurred anticipation that less oil will be available, which is driving up the price in the United States. 

The national price of $4.07 a gallon is the highest since 2008. 

“This is the highest it’s been since 2008 and if it gets much higher, it’ll be the highest price on record that U.S. consumers have paid,” Anderson said. 

Beyond the war in Ukraine, prices may continue to rise for seasonal reasons. Anderson said the summer is when gas prices are typically the highest because of increased travel. He said he anticipates gas prices could be 30 or 40 cents higher than they are now.  

The gas price increases can have a ripple effect. If consumers have to spend more on gas, they may spend less on other things. And because many goods are transported by truck, higher transportation costs can cause the price of other goods to rise. 

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