Cheap gas Louisville KY

January 16, 2023 – 07:38 am

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LOUISVILLE, Ky. (WDRB) - After hovering near the $4 a gallon mark in 2014, Louisville prices have been steadily falling at Louisville area gas stations in recent weeks to well below $3, and Jose Fernandez, an associate economics professor at the University of Louisville, says we can look forward to more low prices.

"The U.S. production has increased, also international production has increased, " Fernandez said. "And, the price of natural gas is low enough that companies that previously used oil to do electricity or whatnot are switching over to natural gas."

But, you may have noticed that, even though the price of crude oil has steadily fallen for months, every week or so, gas mysteriously shoots up again.

You're not the only one who noticed. I checked prices going back three months on Gas Buddy, a website that tracks gas prices across the country. That's where I noticed a trend: every 7 to 10 days, there's been a jump: 13 cents on Sept. 8, 8 cents 10 days later and 9 cents eight days after that. On Oct. 11, there was a 7 cent jump; 15 cents 11 days after that; and 10 days later another 10 cents; and the same jump a week after that.

But, why?

One man says it's all just part of a game, led by the biggest player in the market, Speedway.

Clemson University economist Matthew Lewis studied prices in 165 cities over a period of two years and found that this happens wherever Speedway has a market share of at least 10 percent. It's called "cycling."

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