Higher gas prices expected to continue through the summer
Drivers in the Midwest are seeing higher prices at the pump and an ag economist with Purdue University says the prices will likely continue through the summer.
Wally Tyner says there has been a steady increase in gas prices since crude oil jumped from $50 dollars per barrel in November to $70 dollars per barrel today.
“For every two dollars that crude oil goes up, gasoline at the pump goes up about a nickel- we’re talking about 50 cents a gallon- and that’s what I’m predicting for summer is that gasoline prices are going to be 40-50 cents a gallon higher that they were last summer,” he says. “Translate that into pump price and that is a range of $2.70-$3.15 per gallon.”
He tells Brownfield this means the ag industry will face higher costs of production.
“You can’t change what you do,” he says. “Your planting operations are already set, and hopefully some o are done, it
Tyner says although gas prices are higher than they’ve been in recent years, he doesn’t expect them to get much higher than $3 dollars per gallon.
Audio: Wally Tyner, Purdue University