Hoosiers are paying over $5 a gallon for gasoline, which experts say won’t decrease soon as demand for gasoline continues through the summer.

As of Tuesday, Indiana’s average gas price reached $5.153 per gallon, which is higher than the national average of $4.919, according to the American Automobile Association.

In Lake County, the cost of gas reached $5.503, while Porter County gas prices were recorded at $5.575, according to AAA.

A week ago, Indiana’s gas prices averaged $4.603, while a month ago the state’s gas prices averaged $4.218, according to AAA. In June 2021, Indiana’s gas prices averaged $3.057, according to AAA.

The cost of a barrel of oil is nearing $120, nearly double from last August, which is caused by an increased oil demand that outpaces global supply, said Andrew Gross, an AAA spokesperson, in a statement. Meanwhile, domestic gasoline prices continued to increase following “a robust” Memorial Day weekend of traveling, Gross said.

“People are still fueling up, despite these high prices,” Gross said. “At some point, drivers may change their daily driving habits or lifestyle due to these high prices, but we are not there yet.”

Micah Pollak, associate professor of economics at Indiana University Northwest, said gas prices have increased more than he expected, but he’s most surprised by the increase in oil cost.

The price of oil fluctuates all the time, Pollak said, but when the price of oil reaches $100 a barrel or more, people take notice because that increase is felt at the gas pump.

The last time the cost of a barrel of oil was over $100 for a consistent period of time was during the 2008 recession, Pollak said.

As the war in Ukraine continues and sanctions on Russia continue, the price of oil will likely continue to increase, Pollak said.

“As long as there is this uncertainty, the price of oil will continue to rise,” Pollak said.

Indiana Democrats have been calling on the Republican leaders to pause the state gas taxes as gas prices increase. As of June, Hoosiers have been paying 74.4 per gallon in gas taxes, Pollak said.

Indiana has two taxes on gasoline: the 7% state sales tax and a tax directed to infrastructure projects. The road projects tax that’s currently 32 cents a gallon is set to go up by 1 cent in July. The sales tax charged at the pump is calculated monthly, and the state revenue department determines it based on the statewide average retail price over a monthlong period.

Politicians don’t have power over the price of gasoline, Pollak said, and all they can really do is pause taxes or use oil reserves to help decrease the price slightly.

“This is supply and demand. This is not a political thing,” Pollak said.

According to Bloomberg News, the COVID-19 pandemic put a large dent in global oil demand as fewer people were driving to work daily. Crude oil prices fell, which meant gas prices were fairly low in 2020. As a result of the low prices, energy companies and major oil exporting countries in OPEC cut down crude oil production. U.S. oil demand is about back to where it was pre-COVID, but oil production takes a lot longer to restart than oil consumption, as idled wells can’t be easily restarted, and drilling new wells takes time.

Marie Eisenstein, associate professor of political science for Indiana University Northwest, said politicians could have an indirect impact on gas prices through policy.

For example, stopping construction of The Keystone XL crude oil pipeline sends a message “about commitment to environmental improvements or hostility toward the oil industry” depending on a person’s viewpoint, Eisenstein said.

According to Reuters, only about 8% of the pipeline had been constructed, and it was years away from sending Canadian tar sands oil to refineries in the Gulf of Mexico. Much of the refined oil product would likely have been exported to countries in Europe or Asia.

“To the extent that decision makers in the energy industry, and other organizations, view the decision to halt construction as indicative of future policy decisions — for or against oil — it causes changes in the market and possibly in company decisions,” Eisenstein said.

A company could, for example, switch from investing in crude production to other energy sources in anticipation of future policies, Eisenstein said.

“Individuals and businesses change their behavior in response to changes in government policy,” Eisenstein said.

In addition to policy, Eisenstein said, the government adding money into the economy amid the pandemic has led to inflation, which is impacting gas prices.

“These have a cumulative effect,” Eisenstein said.

Gas prices will continue to increase during the summer, Pollak said, because demand will continue to rise as people travel. People will continue to travel, Pollak said, because incomes are rising and people are working.

“We shouldn’t expect prices to decrease over the summer,” Pollak said.