Fluctuating gas prices often leave drivers confused at the pump, and a Ball State economist said prices could increase when the economy improves.
Michael Hicks, director of the Center for Business and Economic Research, predicted in May that gas prices would reach $5 per gallon during the summer, but it never happened.
"My guess is the economy slowed," he said. "The slower economy meant there was less demand worldwide. As the economy rises, we'll likely see an increase."
Now, the average price for a gallon of gasoline has dropped 12 cents in the past weeks, according to the Lundberg Survey of fuel prices. The average price of a gallon of regular gas is $3.54.
Typically, gas prices tend to be higher in the summer and begin to drop with the start of fall, Hicks said.
The basic laws of supply and demand say that whenever there is a lower demand for a product, there is a decrease in prices, Hicks said. This could be why local gas prices never reached the $5 amount many expected to see.
Senior psychology major Ashley Paul said she thinks the ever-changing and unpredictable prices at the pump are annoying, but they are not a major problem for her.
"I work on campus and live within walking distance, so I honestly don't even have to drive that often," she said. "I think gas prices are ridiculous, and I hate paying for gas. But I feel worse for people who actually drive more than I do."
Read More
Three Air Jam teams take home the win
October 12, 2012Nineteen teams shimmied, shook and flipped for a sold out John R. Emens Auditorium on Thursday night during the 25th annual Air Jam.
Bill Clinton Speaks at North Central High School
October 12, 2012Former President's Speech Could Have Effect on State Senate Race
