Categories: General

Rising ocean temps, oil costs driving Florida’s spike in gas prices, says AAA | Florida News | Orlando

Florida gasoline prices surged again last week, as pump prices have increased by 39 cents a gallon in the past month, according to the AAA auto club.

The average price of a gallon of regular unleaded Monday in Florida was $3.82, up from $3.66 a week earlier and $3.43 a month earlier.

The state hit an average of $3.84 a gallon on Friday, the highest price of the year, AAA said in a news release.

The primary causes are rising costs of oil, OPEC production cuts and extreme temperatures along the Gulf Coast that have kept refineries from operating at full capacity.

And while some easing is expected as refinery operations improve and demand slows with students returning to school, concerns remain as the annual hurricane season enters what has traditionally been its most-active period.

“Drivers should expect continued volatility at the pump during the coming months, particularly as we approach peak hurricane season,” AAA spokesman Mark Jenkins said in a prepared statement.

“The majority of Florida’s gasoline is supplied by refineries along the Texas, Louisiana and Mississippi coastlines. Gas prices could spike just based on the mere threat of a hurricane making landfall in this region. How high gas prices go from there —- and for how long —- would then be based on whether those refineries suffered any long term damage.”

AAA also noted that oil prices tumbled after the U.S. credit rating was downgraded last week, adding to a market view that oil demand could decline if the economy weakens.

“If oil demand drops, prices would likely follow suit,” AAA said in a news release Friday. The state’s highest average prices were in the West Palm Beach area, while the lowest were in the Panhandle. The national average price Monday was $3.83 a gallon.

Subscribe to Orlando Weekly newsletters.

Source link

News Editor 1