INDIANA — Hoosier drivers are facing a sharp reversal at the pump this week. While much of the country continues to see falling fuel costs, average gasoline prices in Indiana have surged by 12.1 cents per gallon over the last seven days, according to the latest GasBuddy survey of 3,271 stations.
The statewide average now stands at $2.77 per gallon. Despite the recent spike, local prices remain 7.6 cents lower than a month ago and a significant 33.3 cents lower than this time last year.
While Indiana has seen a sharp 12.1-cent increase this week, its neighbors are currently seeing a mix of price-cycling hikes and steady declines on regular unleaded gasoline.
| State | Current Average | Weekly Trend |
| Indiana | $2.77 | ⬆️ Up 12.1¢ |
| Illinois | $2.89 | ⬇️ Down 2.0¢ |
| Michigan | $2.70 | ⬇️ Down 11.0¢ |
| Ohio | $2.57 | ⬇️ Down 10.0¢ |
| Kentucky | $2.58 | ⬇️ Down 4.0¢ |
Indiana’s upward trend stands in stark contrast to the national average, which fell 1.2 cents per gallon last week to $2.74. This marks the sixth consecutive weekly decline for the U.S. as a whole.
Patrick De Haan, head of petroleum analysis at GasBuddy, attributes the regional increase to “price-cycling” markets—a common phenomenon in the Midwest where stations engage in aggressive price undercutting followed by a sharp, coordinated “reset” to higher margins.
“While more states did see prices rise this week, most of those increases were in ‘price-cycling’ markets, where routine jumps often follow larger declines,” said De Haan. “Elsewhere, a majority of states saw prices inch lower again.”
The price gap within the state remains massive. According to GasBuddy, the cheapest station in Indiana was spotted at $2.19/g, while the most expensive reached $3.19/g, a full dollar difference per gallon.
Neighboring areas showed mixed results:
- Indianapolis: Prices jumped 16.2 cents to an average of $2.78/g.
- Cincinnati, OH: Prices plummeted 20.7 cents to $2.44/g.
- Champaign, IL: Remained steady with a slight 0.4-cent dip to $2.69/g.
Historical Context: January 5th Comparison
Current prices are significantly lower than the peaks seen in recent years, though they remain higher than the pandemic-era lows of 2021.
| Year | Indiana Average | U.S. Average |
| 2026 | $2.77 | $2.74 |
| 2025 | $3.11 | $3.03 |
| 2024 | $2.75 | $3.08 |
| 2023 | $3.22 | $3.26 |
| 2022 | $3.13 | $3.30 |
| 2021 | $2.22 | $2.28 |
Looking Ahead: The 2026 Fuel Outlook
GasBuddy is set to release its 2026 Fuel Outlook this week, which will provide a roadmap for the year ahead. Analysts are keeping a close eye on global developments, particularly in Venezuela, though De Haan cautioned against expecting immediate impacts on U.S. pump prices.
“Even under the most optimistic outcomes, it could take years of positive developments for additional supply to meaningfully move the needle,” De Haan noted. He expects prices to “bottom out” in the coming weeks before the traditional seasonal climb begins in March.
Meanwhile, diesel drivers saw a slight reprieve as the national average for diesel decreased 2.3 cents to $3.498 per gallon.
