Indianapolis—Gasoline prices are still hovering around $4.20 a gallon. It’s causing many Hoosier drivers to become frustrated but several experts are saying that those prices may soon begin to drop. They claim gas prices have hit the ceiling and should begin to decrease as we inch closer to Memorial Day.
"It's like $50 a week. It's ridiculous," one driver said.
The people selling the gas said they understand.
"Crude oil went from $80/barrel in February to $110 a barrel in April for really no justification whatsoever,” Senior Petroleum Analyst Scot Imus said.
Central Indiana topped out on $4.29 a gallon May 3. That's just 4.5-cents short of the record set back in 2008. Now some, including the senior petroleum analyst for gasbuddy.com, think we've hit the ceiling and will trend lower for the next few months.
Crude prices are more volatile now than they used to be. Investors and speculators have turned the commodity markets into a big casino.
"Goldman Sachs says that speculation interests are adding about $30 a barrel and I think that's conservative,” Imus said.
Petroleum suppliers agree with Imus.
"Oh, absolutely, absolutely! The commodities market is not just speculation either. They're looking at what's happening with weather, what's happening with supply and demand,” one supplier said.
It's gotten so bad, gas station owners are now using the R-word. They’re asking for more regulation from the government.
"We think that's a commodity that should be under greater scrutiny,” Imus said. “There should be some speed bumps brought in, there should be greater transparency, and there should be position hold limits."