Why The Spike In Gas Prices? (VIDEO)

By Corinne Rose

October 8, 2013 Updated Oct 8, 2013 at 5:25 PM EST

FORT WAYNE, Ind. (21Alive) -- As you've driven around Fort Wayne, you've probably seen that gas prices have jumped about 35 cents!

But it's not for the reasons you might think.

This has nothing to do with the government shutdown or the stock market.

We talked with an expert at gasbuddy.com who says portions of the Great Lakes region don't follow national trends in gas pricing.

While gas stations in most of the country tend to keep a steady profit on petroleum, he says some chains in our area feel the intense amount of competition to keep prices so low, the stations actually lose money on gas.

Then, he says, when that cuts too deep, one gas station chain will jump its prices to make a profit, and other chains do the same thing.

The national average for gas is 3-38, down three cents in the last week, so fort wayne is now above the national average.

“Bad news for the economy is good news at the pump. That's only because when the economy, or if there are concerns of a slowdown, or if we do hit the debt ceiling, it could have a negative impact on the economy. And that could slow the economy down enough. When that happens, gasoline demand goes down and thus prices drop,” says Patrick DeHaan from gasbuddy.com.

When fewer people are driving to work, demand for gas goes down, so prices go down.

By the way, Honolulu has the highest gas prices in the country, at $4.10 a gallon.




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