8 Towns With the Cheapest Gas in Indiana

Written by Shreya Agrawal
Published: October 14, 2023
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Gasoline prices can significantly impact our daily lives, affecting our budgets and travel habits. However, finding towns with affordable fuel can be a relief for both residents and travelers passing through. In the state of Indiana, there are several towns known for their consistently low gas prices. This article will delve into the top towns in Indiana with the cheapest gas prices and the factors contributing to these lower prices, as well as the attractions that make these towns worth a visit.

Towns With the Cheapest Gas in Indiana
These towns have the cheapest gas in the state of Indiana.

1. Merrillville

Merrillville Indiana

The cheapest gas in Merrillville, Indiana can be found at Costco for $2.94 per gallon.

©P0908ih / CC BY-SA 3.0 – License

Regular Gas Price: $2.94 at Costco

Merrillville is a town located in Lake County, Indiana. It is also known for its remarkably low gas prices. The Costco in Merrillville offers regular gasoline at a very competitive rate of $2.94 per gallon. This makes it an attractive destination for budget-conscious travelers and residents.

However, Merrillville is not just about affordable gas. It also has much to offer in terms of recreational activities and attractions. Deep River Waterpark in the town is a popular spot for families and has several water slides, wave pools, and other aquatic adventures. Shoppers will also appreciate the Southlake Mall, which has a wide range of stores and dining options. The Merrillville-Ross Township Historical Society offers insights into the town’s past, which makes it a great spot to discover for history buffs.

2. Evansville

Vanderburgh County Courthouse

Evansville, Indiana

©BOB WESTON/iStock via Getty Images

Regular Gas Price: $2.96 at Sam’s Club

Evansville, located in the southwestern part of Indiana, is another town with notably low gas prices. Sam’s Club in Evansville provides regular gas at an affordable rate of $2.96 per gallon, making it a great place to fill up your tank without breaking the bank.

Evansville is the third-largest city in Indiana, and therefore, has a variety of attractions and activities. The Mesker Park Zoo and Botanic Garden is a popular family destination with numerous animal exhibits and beautiful gardens. The Evansville Museum of Arts, History and Science is also a cultural treasure trove, with art, history and science exhibits. Additionally, the city hosts festivals and events throughout the year, making it an exciting place to visit.

3. Gary

Gary Industry

Afternoon sun shines on the industrial district of Gary, Indiana, USA.

©MattGush/iStock via Getty Images

Regular Gas Price: $2.99 at Amstar

Gary, situated along the southern shore of Lake Michigan, is another Indiana town known for its affordable gasoline. The Amstar station in Gary has regular gas at a competitive price of $2.99 per gallon.

Despite its industrial history, Gary has been working towards revitalization in recent years. The city has some attractions like the Indiana Dunes National Park, where visitors can enjoy sandy beaches and hiking trails along Lake Michigan. The Marquette Park Pavilion is also a scenic location for picnics and relaxation. While in Gary, one can also explore the Indiana University Northwest Art Gallery and the Michael Jackson Family Home.

4. New Castle

Historic District, New Castle, Indiana

New Castle may be small, but it’s big on charm and attractions.

©Smallbones / CC0 1.0 Deed – License

Regular Gas Price: $2.99 at Marathon

New Castle, located in Henry County, has affordable gas prices at its local Marathon gas station with regular gas available at $2.99 per gallon. This makes it an excellent stop for travelers passing through the area.

While New Castle may be a small town, it has its own charm and attractions. The Indiana Basketball Hall of Fame celebrates the state’s love for basketball and its rich history in the sport. The Wilbur Wright Birthplace and Museum pays homage to the famous aviation pioneers, the Wright brothers, who were born in the area. Additionally, several parks and outdoor recreational opportunities are also available for those who enjoy nature.

5. South Bend

Bridge over Joseph River

Shot of bridge over Joseph River in South Bend, Indiana on a gorgeous sunny day in spring.

©LeisureCowboy/iStock via Getty Images

Regular Gas Price: $2.99 at Phillips 66

South Bend, home to the University of Notre Dame, is another city known for its affordable gas prices. The Phillips 66 station in South Bend sells regular gas at $2.99 per gallon, giving residents and visitors a budget-friendly option for fueling up.

However, like the rest of the cities on this list, South Bend has more to offer than just cost-effective gas. The University of Notre Dame campus is a must-visit for its stunning architecture and rich history. Meanwhile, the Studebaker National Museum represents the city’s connection to the automobile industry. Finally, for those who love nature, the South Bend Riverwalk is a beautiful place to take a leisurely stroll along the St. Joseph River.

6. Union City

An aerial view of the town of Union City, Indiana.

©Troypoling27 / CC BY-SA 4.0 – License

Regular Gas Price: $2.99 at Marathon

Union City, a town in Randolph County, sells affordable gasoline at its local Marathon gas station, where regular gas is priced at $2.99 per gallon. This makes it an economical place to refuel your vehicle.

In addition to its low gas prices, Union City has a friendly and welcoming atmosphere. The Union City Historic District has well-preserved 19th-century architecture, allowing visitors to take a step back in time. The Ohio-Indiana Stateline Marker is also a unique attraction where visitors can stand in two states simultaneously.

7. Prairie Creek

Prairie Creek, Indiana

The Prairie Creek General Store sells regular gas at a competitive rate of $2.99 per gallon in Prairie Creek, Indiana.

©Chris Flook / CC BY-SA 4.0 – License

Regular Gas Price: $2.99 at Prairie Creek General Store

Prairie Creek, which is a small unincorporated community in Vigo County, is another destination in Indiana with attractively low gas prices. The Prairie Creek General Store sells regular gas at a competitive rate of $2.99 per gallon.

While Prairie Creek may not have major tourist attractions, it does have a serene and peaceful atmosphere for those looking to escape the hustle and bustle of urban life. The nearby Wabashiki Fish and Wildlife Area has several opportunities for birdwatching, hiking, and wildlife observation in a natural setting. This makes it an ideal place for those seeking a quiet retreat.

8. Ligonier

Downtown Ligonier, Indiana

Casey’s in Ligonier provides regular gas at $3.01 per gallon

©Derek Jensen / Public Domain – License

Regular Gas Price: $3.01 at Casey’s

Last but not the least, Ligonier, a town in Noble County, is another option for travelers looking for towns with affordable gas prices. Casey’s in Ligonier provides regular gas at $3.01 per gallon, which, while slightly higher than some other towns on this list, is still reasonable.

Ligonier may not be as well-known as some of the larger cities in Indiana, but it has its own unique charm. The Ligonier Historical Museum has pieces and memories from the town’s history, including its ties to the railroads and the local Amish community.

What Influences Gas Prices in Indiana?

Gasoline prices in Indiana, like in any other part of the world, are influenced by a complex interplay of factors. Here are some of the factors that influence gas prices in Indiana:

Crude Oil Prices

The most significant factor affecting gas prices is the cost of crude oil, which accounts for a substantial portion of the price at the pump. Any disruptions in the global oil supply, such as conflicts in oil-rich regions or decisions made by major oil-producing nations like those who belong to OPEC, can lead to fluctuations in crude oil prices and thus, directly impact gas prices in Indiana.

Refining and Distribution Costs

After crude oil is extracted, it needs to be refined into various petroleum products including gasoline. Refining costs, which can vary based on factors like refinery maintenance and the availability of different grades of crude oil, can impact gas prices.


State and federal taxes have a significant impact on the final cost of gasoline. Indiana imposes a gasoline excise tax, and the federal government also levies a federal gas tax. Additionally, regional or local taxes may apply.

Seasonal Factors

Gas prices can vary seasonally due to changes in demand. Typically, gasoline prices rise during the summer months, as more people travel and drive longer distances for vacations.

Market Competition

The level of competition among gas stations in Indiana also plays a role in gas prices. In areas with numerous gas stations in close proximity, stations may be more inclined to reduce prices to attract more customers.

Environmental Regulations

Gasoline specifications and environmental regulations can also influence gas prices. This is because states may be required to produce special formulations of gasoline that are less polluting but may be more expensive to make.

The photo featured at the top of this post is © rarrarorro/ via Getty Images

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About the Author

Shreya is a climate scientist. She also studies paleontology and evolutionary biology. She enjoys reading all kinds of literature and listening to rock music in her free time.

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