Energy

Gas Price Drops to $1.18 in Indiana, Lowest in US

Douglas A. McIntyre

Published: January 26, 2016 11:10 am

Last Updated: January 13, 2020 2:35 pm

The average price of a gallon of gasoline nationwide is $1.82. However, in some areas it is much, much lower. Lebanon, Ind., has a station that sells gas at $1.18. A nearby station in Crawford, Ind., sells a gallon for $1.23. Indiana is among three states where stations in some places have gas prices well below $1.30, according to GasBuddy.

Eight of the stations among the 20 with lowest gas prices are in Indiana. Eleven are in Oklahoma and four in Ohio. The presence of Oklahoma makes sense, but less so the other two states. The average price in Oklahoma is $1.54, among the lowest in the nation. Oklahoma is not only oil rich, but is also near refineries that provide gasoline.

The price of a gallon of regular in Ohio is $1.63, and in Indiana $1.60. Cheap but not near the bottom. Because the area of very low gas prices in Indiana are geographically close to one another, the reason for these prices could be a small gas price war among stations.

A careful look at the figures for cheapest gas by geography shows that even the Oklahoma prices may be due to local competition. The stations that have the lowest gas prices are clustered together.
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One primary reason for the drop in gasoline prices overall in America is the sea of available oil, due in part to a flood from Saudi Arabia, and perhaps to falling demand as the global economy slows. Despite the loud protests of other OPEC members, the kingdom said it will keep pumping.

Oil inventory is not the only factor. Proximity to refineries is also an issue. The average gas price in Missouri is $1.59. In South Carolina it is $1.63 and in Texas $1.62. Several are near the huge refineries south of Houston and the Gulf of Mexico, which is dotted by deepwater oil drilling platforms.

Gasoline taxes by state are another factor. The average nationwide is $0.48 per gallon. In Oklahoma it is $0.35. However, in Ohio the number is $0.46, evidence that parts of the state are in the midst of a price war.

To show just how low the Indiana gas price is: one station in Florida sells a gallon of regular for $5.99.