Florida sets another record high for gas prices

Gas prices jumped about 30 cents in past week, according to AAA

(WPLG)

MIAMI – The price of gasoline has risen yet again, setting another unwanted record in Florida, AAA reported Monday.

The state average price for gasoline reached a new high of $4.49 per gallon on Sunday. This beats the previous record of $4.38 per gallon, set back in March just after Russia invaded Ukraine.

Prior to this year, the record high was $4.08 per gallon, which was set back in 2008.

According to AAA, Florida’s average price for gasoline jumped about 30 cents in the past week.

The state average is now $1.60 per gallon more than a year ago and it now costs about $67 for a full 15-gallon tank of gas – a whopping $24 more than what drivers paid this time last year.

“Drivers are dealing with unprecedented pain at the pump and things could soon get worse before they get better,” said Mark Jenkins, spokesman, AAA - The Auto Club Group. “We saw more big gains in the gasoline futures market late last week, which could trickle down to yet another 10-20 cent jump at the pump in the near future.”

According to AAA, global fuel supplies remain tight, keeping that upward pressure on oil prices as the price on oil accounts for more than half the price of gasoline.

Despite the spike in gas prices, oil prices are not at record highs, AAA reported.

“U.S. gasoline supplies are declining as international demand for U.S. gasoline grows, all while the market braces for a summer driving season that is stronger than last year,” AAA reported in a news release.

According to AAA:

  • U.S. gasoline supplies have dropped 6% over the past six weeks.
  • U.S. gasoline exports are 20% stronger than this time in May 2019, due to strong international demand for gasoline.
  • The increased competition - both domestically and abroad - has driven up the bidding price for each barrel of fuel.
  • While all this plays out on a global scale, the U.S. fuel market is bracing for the summer travel season, and analysts expect gasoline demand to be stronger than last year.

According to the International Energy Agency, sky-high fuel prices will likely cause U.S. oil production to return to pre-pandemic levels by the end of 2022.

The latest reading from the EIA shows that “U.S. oil production is at 11.8 million barrels per day, which is about 10% below the pre-pandemic record-high of 13.1 million barrels per day,” AAA reported.

“A return to previously record-high production levels could cool the fuel market and lead to lower prices,” the news release stated. “However, given the recent shifts in global supply and demand, it may not immediately signal a return to $2 a gallon gasoline.”

“Unfortunately, $4 gasoline is likely to be that unwelcome passenger on most Florida summer road trips,” Jenkins continued. “At this point, the state average is not expected to exceed $5 a gallon. However, the fuel market is extremely unstable and things are changing by the day. Either way, drivers should expect gas prices to keep fluctuating throughout the summer and potentially the rest of the year.”

The most expensive metro markets are currently West Palm Beach-Boca Raton ($4.63), Fort Lauderdale ($4.55) and Sebastian-Vero Beach ($4.53).

Visit gasprices.aaa.com for more information on gas prices throughout the state and nationwide.


About the Author:

Amanda Batchelor is the Digital Executive Producer for Local10.com.