Energy

Indiana Gas Prices Plunge to $1.29

Douglas A. McIntyre

Published: January 23, 2016 9:10 am

Last Updated: January 13, 2020 2:41 pm

While gasoline prices average about $1.90 a gallon nationwide, the average price for a gallon of regular has dropped to $1.29 in the area around Indianapolis. The ultra-low price is likely the result of a price war.

Gas prices are below $1.30 in a few places, but the areas around Ohio’s capital, Columbus, and Indianapolis are the largest pockets of these. A gallon of regular has dropped to $1.21 in a few cities in and around Columbus. The center of the low gas prices in Indiana is Mooresville, where 10 stations have prices at $1.29 and another handful have prices at $1.30. One part of Indianapolis has seven such stations in close proximity to one another.

That national average will go lower, probably much lower. Crude oil prices dropped to $28 a barrel and have spiked up 10% recently. However a year ago, the price was nearly $65 a barrel.

A primary reason for the drop in gasoline prices 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.
[ims_survey]
Oil is not the only factor. Proximity to refineries is also an issue. The average gas price in Louisiana is $1.67 a gallon. In Oklahoma it is $1.57 and in Texas $1.55. All are near the huge refineries south of Houston and along 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. But in Ohio the number is $0.46 and in Indiana $0.48. This is evidence that each state has a section where there are price wars. However, gas across much of the United States may fall to the $1.30 level if oil prices keep falling.