Motorists are concerned with rising gas prices
Experts blame local supply, weak dollar
Last Updated: 285 days ago
INDIANAPOLIS - Gas prices are up more than 10 cents since last week, and that is causing concern and frustration for motorists.
The climbing gas prices are leaving drivers concerned and wondering who or what to blame.
Experts agree a variety of problems can lead to high gas prices, but the two big issues now are a lack of local supply and a weak U.S. dollar.
In order to fund deficit spending, the U.S. is printing a lot of money right now, about $85 billion a month, experts say.
“When the supply of money grows faster than the supply of oil, the ultimate result of that is that the price of oil is going to go up,” said Todd Roberson, senior lecturer at the Kelley School of Business.
Other experts said this recent spike is also due to the lack of availability of gas locally.
Some of the Midwest supply has been shipped to the East Coast to help them cover for refinery closings last year.
“Some of that refining capacity is being diverted to the East Coast, so really the East Coast is getting most of theirs from shipping rather than from their local refineries,” said Matthew Will, an associate professor of finance at University of Indianapolis.
Experts said the summer blend of gasoline is coming soon which will likely add to already-high prices, and Indiana could see $4.50 or even $5 a gallon by summer.
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