Gas prices plunged in Northwest Indiana last week and could fall under $3 a gallon by Christmas due to sagging demand, but OPEC+ production cuts could have an impact on what motorists pay at the pump.
The national average for a gallon of gas fell to $3.40 last week, about 14 cents lower than the previous week, according to AAA. Gas prices fell 22 cents per gallon last week to an average of $3.43 a gallon in Indiana and 19 cents a gallon to $3.64 a gallon in Illinois, two of the largest drops in the country.
Gas prices have gone down by as much as 70 cents per gallon over the past two weeks in Porter County.
The average gas price dropped 26 cents nationally over the past two weeks due to weak demand, but an OPEC+ meeting in which countries agreed to cut production could raise the global price of oil, analysts say. Crude oil prices fell $1.24 per barrel last week to $79.98 per barrel, but the cartel will reduce production by 2 million barrels per day next year.
“Gas prices are dropping sharply and are only a nickel more per gallon than a year ago,” said Molly Hart, spokesperson for AAA–The Auto Club Group. “But with oil being the main ingredient in gasoline, OPEC+’s move could slow this decline. However, the gas price will likely soon be lower than it was a year ago.”
The cost of fueling one’s ride is 39 cents a gallon higher than a month ago and 5 cents more than a year ago, according to AAA.
Gas now costs an average of $3.42 a gallon in Lake County, $4.31 a gallon in Porter County and $3.44 per gallon in LaPorte County, according to GasBuddy.com. As of Monday, the average price of gas was $3.39 in Newton County and $3.40 in Pulaski County, Jasper County and Starke County. Over the last two weeks, that’s a decrease of 66 cents per gallon in Lake County, 70 cents per gallon in Porter County, 48 cents per gallon in LaPorte County and 55 cents per gallon in Newton County.
Gas prices in the greater Chicago metropolitan area average $3.75, including an average of $4.17 within city limits, according to AAA. Gas costs about $3.47 per gallon in Fort Wayne and $3.28 per gallon in South Bend.
The Energy Information Administration estimates gas demand held steady at 3.2 million barrels per day. Domestic gasoline stocks rose by 2.8 million barrels to 213.8 barrels.
An estimated two-thirds of adults in the United States told AAA they have adjusted their driving habits since the Russian invasion of Ukraine sent gas prices soaring worldwide in late February.
“For the first time in 670 days, the national average price of gasoline has fallen below its year-ago level, dropping for the fourth straight week to its lowest level since January,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Every state has again seen average gasoline prices drop in the last week, and it remains very possible the national average could fall under $3 per gallon by Christmas.”The downward trend will likely continue in the short term, De Haan said.
“There has also been a drop in diesel prices, which this week will fall back under $5 per gallon, and could soon thereafter fall to their lowest level since March,” De Haan said. “However, despite all the good news about fuel prices, there may be some concerns coming as the price cap on Russian oil kicks in. Retaliation is possible, and while OPEC+ upheld production cuts from last month, they could always cut more production. For now, however, we’ll likely see another week of declines at the pump in nearly all areas.”
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