Economy
4:31 pm
Wed August 22, 2012

WKU Economist Says It's Difficult to Predict Gasoline Prices

The cost of gasoline is having an impact on the lives of people across the state and nation, but experts say it can be very hard to determine why prices seem to fluctuate so quickly. Dr. Brian Goff is an economist with WKU's Center for Applied Economics.  He says many consumers are unaware of the influence inventories can have on the price at the pump.

Dr. Goff says people in South Central Kentucky often complain that gasoline prices are too high, compared to Tennessee. But the WKU economist says Tennessee tax laws play a part in that pricing difference.

Dr. Goff says the long term outlook for gasoline prices will depend on world demand. He thinks the development of economies in India and China could be a major factor in gasoline prices in the years ahead.