SCSU’s Banaian; Gas Price Rise Will Be Short Lived
Gas prices have been on the rise recently but St. Cloud State Economist King Banaian doesn't think that will continue. He joined me on WJON today. He says the reason for the rise in gas prices has to do with an electrical situation that happened at a plant in Indiana which took the biggest supplier of gas in the Midwest offline. Banaian says it takes them about a week and a half to cycle that back up. He says it is possible prices could go above $3.00 a gallon but it won't stay there. Banaian expects prices to go back down and views this increase as a blip that will last no more than 2 weeks.
Banaian believes gas prices will go back up when the switch is made from winter blend to summer blend in early April. Banaian doesn't expect to see a big increase in gas prices when the switch from winter to summer blend happens because the broader economy is showing people are backing off on their spending. He suspects less money will be spent on travel and because of that lack of demand, prices will not climb a lot this summer.
Air travel demand was high in 2023 and Banaian indicates no change to that demand has happened yet. Due to this, he says airfares remain relatively high. He suspects demand to go down and that should also affect airfares. Banaian says it is typical that flying during the weekdays tends to be cheaper than on weekends. He suggests leaving and coming back on Tuesdays, Wednesdays or Thursdays for better airfares.
If you'd like to listen to my conversation with King Banaian, it is available below.
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