FORT WAYNE, Ind. (WANE) – Driving around northeast Indiana this week, customers may have noticed a spike in gasoline prices.
“So [Tuesday] most prices at Fort Wayne gas stations jumped to about $3.15 a gallon. This is kind of the behavior we saw across Indiana,” said Patrick De Haan, head of petroleum analysis at Gas Buddy.
According to De Haan, this is called price cycling which is when gas stations all go up around the same time.
“Demand for gas is very strong as consumers continue to get outside in the summer months. As states have opened, the demand for gas has surged and this has pushed the price of oil up to its highest level since 2018,” De Haan said.
When the pandemic started, motorists stopped driving as frequently. This caused the price of gas to plummet. De Haan said this caused oil companies to lay off thousands of employees and shutting down many oil production locations.
“Only in the last say five or six months has things really started to improve to the point of raising oil production. And now, as demand has surged, oil production has lagged behind that,” De Haan said.
He added that there are a few stations around Fort Wayne that haven’t had a price increase, just yet.
“If you’re driving around [and] you need gas. If you find it under $3, it would probably be a good idea to fill your tank up given that most stations will probably be going up,” De Haan said.
In the future, De Haan said that he expects gas to bounce back and fourth around the $3 per gallon mark as the oil industry tries to catch up with the demand.
To find the most up to date prices for gas in your area, click here.