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Indiana gas prices rise above $4, expected to continue increasing

By Sara Molina

Posted October 11, 2022

gas according to AAA

Gas prices in Indiana, October 11th. (American Automobile Association)

A nationwide increase in gasoline prices echoes record-breaking prices from last summer, putting Indiana’s average price per gallon above $4. 

Just last month, Indiana’s prices decreased to average about $3.80 per gallon. The increase comes after The Organization of the Petroleum Exporting Countries cut oil supply last week. 

“That decrease in oil supply from OPEC means that globally all oil supply is starting to decrease,” said Nikolas Zirogiannis, assistant professor of environmental economics at IU. “And that's pushing prices higher in addition to the existing pushing that we have seen as a result of the Russian invasion of Ukraine.”

Gas prices nation-wide first increased earlier this year when Russia invaded Ukraine. Russia is one of the biggest oil suppliers in the global market, he said.

Countries stopped accepting Russian oil to show opposition to the invasion, which increased prices. China and India adopted oil from Russia to send to the United States, Zirogiannis said.

“That Russian oil did find a quote-unquote ‘home’,” he said. “So that sort of stabilized markets a little bit, that's why we started seeing markets coming down towards the end of the summer.”

Supplies continue to decrease as the war prolongs. OPEC countries preemptively stopped oil supply due to concerns of increasing energy prices. As the economy moves out of COVID, people are also beginning to spend more money. 

All three of those factors play a part in the recent inflation, Zirogiannis said. 

According to the American Automobile Association, Bloomington gas prices are averaging about $4.25. Kevin Dietrich, a customer at the Kroger gas station near College Mall Road, said high gas prices are hard on families. 

“I have a family, and trying to support my family, paying insurance and gas has been really difficult,” he said. 

People should expect high gas prices to continue over the next few months. It might be a rough winter and prices could increase even further, Zirogiannis said. 

“At some point this period of high gas prices is going to go away, but we want to make sure that we do not forget that there were times when we were paying $4.25 for a gallon of gas,” he said.  “We need to stop using fossil fuels as soon as we can if we want to continue living on a planet that will be considered habitable.” 

People can help reduce the use of fossil fuels by carpooling, looking into other methods of transportation and reducing discretionary trips like vacations. 

Gas prices can continue to be monitored through AAA.

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