How Much Will Tariffs Increase Gas Prices in Indiana?

Now that tariffs on Canadian oil are in effect, will we see an increase in price at the pumps in Indiana? Let's take a look.

We all know that it can cost a pretty penny to fill up your gas tank. Even though prices have dropped at the pump, it still takes quite a bit of money to fill up your tank. Luckily, Indiana's gas prices are a little below the national average. Stacker compiled statistics on gas prices in Indiana. Gas prices are as of February 27th.

Indiana by the numbers
- Gas current price: $2.87
- Week change: -$0.08 (-2.7%)
- Year change: -$0.30 (-9.4%)
- Historical expensive gas price: $5.24 (6/9/22)

- Diesel current price: $3.65
- Week change: -$0.00 (-0.1%)
- Year change: -$0.34 (-8.4%)
- Historical expensive diesel price: $6.04 (6/22/22)

Metros with the most expensive gas in Indiana
#1. Lafayette: $3.00
#2. Clarksville: $2.95
#3. Dearborn-Franklin-Ohio-Union: $2.95
#4. Muncie: $2.92
#5. Bloomington: $2.92
#6. Terre Haute: $2.91
#7. Michigan City-La Porte: $2.91
#8. Kokomo: $2.90
#9. Gary: $2.89
#10. South Bend: $2.89
#11. Elkhart: $2.85
#12. Indianapolis: $2.85
#13. Fort Wayne: $2.82
#14. Evansville: $2.78
#15. Columbus: $2.77

All of that being said, the Trump administration's 25% tariffs on goods from Canada and Mexico went into effect Tuesday morning. There will also be a 10% tariff on energy imports, which could cause gas prices to begin to go up this week. Refined products like gasoline, diesel, heating oil, propane, jet fuel, and more will be impacted. The question is, how much will Indiana's gas prices be impacted by these tariffs?

How Much Will Tariffs Increase Gas Prices in Indiana?

Here's just how much that new tariff on Canadian oil could increase prices across Indiana, according to Patrick DeHaan, an analyst at GasBuddy.com:

The Great Lakes region’s (Michigan, Wisconsin, Illinois, Indiana, Ohio, Pennsylvania) refineries are particularly dependent on Canadian crude oil inputs. Like the Midwest, there would be a processing delay before consumers feel the full impact at the pump. Residents across these states should prepare for price increases of 10-25 cents per gallon for both gasoline and diesel, though some economic effects from the tariffs could slightly moderate these increases.

 

DeHaan went on to say that any increase due to the tariffs likely won't hit pumps in our neck of the woods right away. We might not notice an increase for about two to three weeks if tariffs stay in effect. So, only time will tell if we will see a drastic change in gas prices, but it's definitely something to keep an eye on.