TERRE HAUTE, Ind. (WTWO/WAWV)– As Quentin Moseman saw gas prices spike around Vigo County, he had a sinking feeling.
“It affects everything, it makes prices on everything higher, and it’s just not fun to deal with,” he said.
Some stations around the area saw increases up to about 50 cents higher than the day before, as prices topped out around $3.89 a gallon.
However, it might not last long. Robert Guell, an economic professor at Indiana State, believes the latest rise is linked to refineries shifting to the winter blend for gasoline from the summer one.
“The Environmental Protection Agency establishes the dates when you sell the various blends, from May 1 to September 15, literally six days ago, that the summer blend stopped,” he said.
Guell said this is not a similar situation to spikes seen early on in the summer, which were happening on a national scale as well.
“The good news on that is that that is a short term phenomenon so the spike tends to be highly localized,” he said. “You look at national data, and that’s not an issue, you’re not seeing the kind of spike that is happening that is happening in Vigo County right now.”
He said the national trends show nothing to indicate such a large increase.
“Crude oil prices have been relatively stable, in the $85 range. So it’s not a big spike in crude oil, I seriously doubt whether Putin’s bluster is the explanation. Anytime gasoline prices spike at this time, or in April, I just tell people, it’ll pass,” he said.