INDIANAPOLIS — Drivers in Indianapolis are paying noticeably more at the pump than just a month ago, and a petroleum analyst says the conflict in the Middle East is the primary reason, with no clear timeline for relief.
WATCH FULL STORY BELOW
Gas prices in Indianapolis are up 80 cents a gallon. Patrick De Haan, head of petroleum analysis at GasBuddy, says prices had been cycling around $2.99 for most of the winter.
De Haan says military activity in the region is the dominant factor driving the increase.
"Oh, absolutely, the military activity in the Middle East. The threat of attacks on vessels in the Strait of Hormuz is basically, probably 85% to 90% of why prices have gone up," De Haan said.
On Tuesday, AAA reported the national average for regular gas at $3.53 a gallon. Indiana sits just below that at $3.49. Most stations in the Indianapolis metro area are just under $3.60 a gallon.
De Haan says there may be a ceiling forming on how high prices climb in the near term.
"With oil prices recently starting to show some downward pressure, that could mean that the price cycle last week to $3.59, we may not see much beyond that," De Haan said.
Diesel costs have surged even higher, raising concerns across multiple sectors of the economy.
"Which is hugely problematic for logistics, for agriculture, for just about everything that powers the US economy.... The national average price of diesel has risen $1 a gallon in the last eight days," De Haan said.
Seasonal factors are also adding upward pressure on prices, compounding the impact of the geopolitical situation.
"We could see gas prices start rolling back in the weeks ahead, depending on how the situation unfolds, but we are also in the backdrop of all of this, are amidst seasonal increases in gas prices due to the changeover to summer gasoline, rising demand as temperatures warm up, and also refinery maintenance," De Haan said.
De Haan expects prices to remain in the mid-three-dollar range through spring, with limited relief until later in the year.
"Maybe by Memorial Day in the low threes, but we probably won't see a whole lot of sub $3 prices until either the situation in the Middle East is completely done, or later this summer and into the fall," De Haan said.
Tips to help drivers save on gas from GasBuddy:
- Adjust your driving habits. Every car comes with an official miles-per-gallon rating, but many drivers can do better than that. Avoid speeding, rapid acceleration, and aggressive driving. Taking it easy behind the wheel can improve fuel efficiency by 10–15% per tank
- Use apps to find cheaper gas. Apps like GasBuddy, Google Maps, and Waze can help you locate the lowest gas prices near you before filling up.
- Sign up for gas station loyalty programs. Many stations offer free rewards programs that can reduce the price of gas by 5–10 cents per gallon.
- Use the right credit card or payment option. Some credit cards offer around 2% cash-back on gas purchases, and certain stations offer cash discounts. GasBuddy also offers a payment card that can save drivers up to 33 cents per gallon.
- Remove extra weight from your vehicle. Carrying unnecessary items can hurt fuel efficiency. Every additional 100 pounds can reduce your fuel economy by a couple of miles per gallon.
- Take off unused roof or bike racks. Roof racks and bike racks create drag and reduce aerodynamics, which can lower fuel efficiency if they're not in use.
- Shop around when you fill up. Prices can vary from station to station, so it pays to check different locations before fueling up. While big price differences may be harder to find right now, that could change in the coming days.
__
