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home : most recent : statewide implications July 16, 2018


5/4/2018 5:57:00 PM
Gasoline prices stay high, expected to stand still through summer

Jillian Ellison, Journal and Courier Education and Families Reporter

LAFAYETTE — The gas price roller coaster made its ascent through motorists' wallets this week, and the ride isn't anticipated to drop anytime soon.

Wally Tyner, energy economist and Purdue University professor in the College of Agriculture, said the increase in gas prices is fueled by high prices on crude oil, with the blame put on the Organization of the Petroleum Exporting Countries and Russia.

"They both have been trying to keep supplies low, and by and large they have succeeded," Tyner said. 

Tyner said crude oil barrels are currently priced at $70, and for every two dollars a barrel goes up in price, a nickel is added on to the price of gas.

"The global economic growth is strong across the board," he said. "This means there is a higher demand for crude products, and the combination of growing demand and shrinking supply of course means higher prices."

Tyner said motorists should anticipate gas prices to stay high through the summer, averaging between $2.70 to $3.15 per gallon.

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• Journal and Courier full text

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