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Understanding Local Gas Prices

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Gas prices

WEST LAFAYETTE, Ind. (WLFI) - There are a multitude of factors that affect what we pay at the pump.

Varying from location, petroleum companies, and even foreign relations, crude oil prices can jump at a moments notice.

New 18 spoke with an expert in this area and asked if we will see yet another jump in 2022.

Dr. Farzad Taheripour, a professor of Agricultural Economics at Purdue University, tells us that our current strong global economy is a main factor.

"We expect to see in general a higher demand for crude oil. A higher demand for crude oil means a higher price for crude oil, that means a higher price for gasoline," said Taheripour.

International issues also affect the price of crude oil.

"When you look at the controversy between Russia, Ukraine, and all of those kind of things. The situation will affect the price of crude oil," said Taheripour.

In terms of differing prices between even neighboring towns, Taheripour tells us this.

"Between Lafayette and West Lafayette, of course there are other drivers. Some gas stations are more attractive for the consumers, they are closer to them or they are more convenient, etc. people are going to those gas stations more frequently, so they sell at a higher price," said Taheripour.

As for asking if we will ever see gas prices dip below two dollars a gallon again?

Taheripour says "no way."

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