Indiana sees significant increase in gas prices

LAFAYETTE, Ind. (WLFI) - "We've been traveling over the summer a little bit and I've noticed when we go East and South the prices are quite a bit less," motorist Kevin Kobe said about gas prices in Indiana.

Kobe said he isn't happy about gas prices and adds he wasn't surprised to hear Indiana has seen some of the most significant increases in gas prices in the country.

Purdue Ag Economist Wally Tyner said the Midwest is seeing a jump in prices because of two reasons.

"One reason is this tension in the Middle East that jacked up world crude prices and second is refinery outages all over the country. Some of them right here in the Midwest," Tyner said.

Tyner said those refineries experiencing outages are where many Indiana companies get their gasoline, helping push the average gas price for Hoosier drivers to three dollars and 80 cents a gallon.

"Three refinery outages in Illinois, troubles with the pipeline supplying Whiting in northern Indiana, and also Whiting have an outage all have an impact on Indiana prices," Tyner said.

Motorists say filling up the pump is costing them a lot more money then they'd like to spend, but say they don't have much of a choice.

"Well as you can see it's about 100 dollars to fill up so it's a couple, 250, 300 a week for us just to get by," Rick Snyder said as he filled up his van.

"I don't really have any other mode of transportation other than my car so I'll drive to school, I'll drive to Purdue to go to my classes, and I also drive everywhere pretty much. I need it," Purdue student Timothy Kelly said.

Some motorists said they aren't surprised by the prices.

"It's expected I guess with the corn prices going up and the economy being the way it is. I guess I'm not surprised," Chuck Clemons said as he filled up his car.

Wally Tyner said because corn prices are up and it is used to create ethanol, gas prices are even affected by the drought.

"Ethanol has gone up 60 cents a gallon and since what you get at the pump is 10 percent ethanol, that's six cents a gallon that's due to the drought," Tyner said.

Tyner said he expects gas prices to eventually go down heading into the fall but said if tensions in the Middle East increase prices may not go down.