Gas prices in Indianapolis hit $2.09 a gallon

Tom Spalding

April 08, 2009 by Tom Spalding | Star staff

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Indy prices rise overnight to $2.09 a gallon, but experts say they’re headed back lower soon

Central Indiana’s reprieve at the gas pump went on hiatus Tuesday as prices rose 25 to 40 cents a gallon at many locations.

Motorists paid as much as $2.09 for a gallon of regular unleaded, up from $1.71 to the $1.90s the day before. But not to worry, say experts in the field. It’s not likely to stay above $2 for long.

“I think the up trend is going to not stick until there’s a real sign that the world recession is over or at least is abating substantially,” said Peter Grossman, an economics professor at Butler University. “As long as the economic news is at least iffy, and that’s where it is, to say the least, we won’t see a great (jump) in oil prices.”

Since paying $4 a gallon as recently as last summer, motorists have enjoyed a break in recent months.

A year ago, the average price in Indiana was $3.13 a gallon. By December, it was down to $1.70.

On Tuesday, the state average was $1.95 a gallon, according to AAA. In Indianapolis, the average was slightly lower at $1.90.

Some of the recent rise has to do with the fluctuation in oil prices. Crude has jumped from less than $35 a barrel in February to a high of $53.60 Monday. But it dropped below $49.15 on Tuesday.

The Indiana Petroleum Marketers and Convenience Store Association has said that retailers typically bump up prices only after an extended period of barely breaking even or taking losses at the pump.

“With weak consumer spending, it’s hard to gauge, quite honestly,” said Greg Seiter, spokesman for AAA Hoosier Motor Club. “We know, typically in the spring with the introduction of reformulated gas, that prices tend to go up.”

Mary Jo Bussell, an Indianapolis caregiver, found gas at $1.83 per gallon at a Speedway station near Downtown on Monday and filled up in advance of the surge.

She said she’s tired of playing a guessing game as to when prices might rise.

“I’m not happy to see it go up. . . . I think it’s ridiculous,” Bussell said.

Category: Business

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indiana petroleum marketers, convenience store association, peter grossman, aaa hoosier motor club, world recession, hoosier motor club, economics professor, bussell, guessing game, seiter, oil prices, central indiana, fluctuation, reprieve, consumer spending, economic news, motorists, caregiver, hiatus, topsections, topstories, Business, Butler University, starheadlines

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