TERRE HAUTE, Ind. (WTWO/WAWV) – Gas prices in the Wabash Valley are going up. The cause of this increase ranges anywhere from world economic unrest to simply the change of the seasons.
Robert Guell is an economics professor at Indiana State University and he said that a big reason for the high gas prices stems from low crude oil prices last year.
“Global oil prices were so low that domestic producers in Texas and New Mexico couldn’t make a profit,” Guell said. “As a matter of fact, they were making catastrophic losses.”
A rise in price to get out of the deficit caused by global disruptions last year is playing a role in the price that you’re paying at the pump. However, Guell said that there’s a more timely reason for high gas prices.
Guell explained that the beginning of the fall and spring months usually see a spike in gas prices.
“The reason October and March are bad is because for environmental reasons, the formulation of gasoline changes from a winter blend to a summer blend,” Guell said.
Guell also stated that general supply and demand changes also play a role in the fluctuation of gas prices. Some of these price swings could be a slight or a big swing in price.
