Oil prices rally as countries consider cutting crude production
The effects of COVID-19 continue to take a toll on prices at the pump. Florida gas prices dropped another 7 cents last week, contributing to a massive 50 cent drop in the past 40 days. The state average sits at a 4-year low as it prepares to slip into the $1.80s this week.
- Although the average price for gasoline in Florida is $1.91 per gallon, the lowest 10 percent of gas prices are $1.68.
- Nearly 90 percent of Florida gas stations have prices below $2 per gallon.
- Ten percent of Florida gas stations have prices below $1.75.
- Demand for gasoline in Florida has reduced by as much as 50 percent, according to the Florida Petroleum and Marketers Association.
If the state average eventually slips below $1.74 per gallon, Florida gas prices would be the lowest since January 2009. While it’s still possible we reach that benchmark, last week’s rally in crude oil prices is beginning to raise the floor on how far pump prices could fall.
Crude oil prices rose on reports that various countries like Saudi Arabia and Russia are considering cutting oil production to offset low global fuel demand - caused by COVID-19. OPEC and its allies scheduled an emergency meeting to tackle the topic. The meeting was scheduled for Monday, then postponed to Thursday. The delay could cause crude prices to slip early this week. Regardless, crude oil prices rose 37 percent last week. Friday’s daily settlement of $28.34 per barrel is the highest in two weeks.
"The recent crude oil rally is not yet enough to force gas prices higher, but it does affect how much lower they can go," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "Historically, gas prices rise like a rocket and fall like a feather. In this case, retail prices are still slowly falling to catch up with the massive discounts in oil and gasoline values that we saw in the past six weeks. While it’s unclear which way oil prices will go this week, the plunge at the pump should continue this week."
- Most expensive metro markets – Gainesville ($2.11), West Palm Beach-Boca Raton ($2.07), Miami ($2.02)
- Least expensive metro markets – The Villages ($1.80), Jacksonville ($1.80), Punta Gorda ($1.80)
Find Florida Gas Prices
- Daily gas price averages can be found at Gasprices.aaa.com
- State and metro averages can be found here
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AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 130,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.
About AAA - The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, insurance, banking, financial services, and travel offerings to over 13.5 million members across 13 U.S. states, the province of Quebec and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Carolina, North Dakota, Tennessee, Wisconsin, Puerto Rico, South Carolina and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana. ACG belongs to the national AAA federation with more than 60 million members in the United States and Canada whose mission includes protecting and advancing freedom of mobility and improving traffic safety. Motorists can map a route, identify gas prices, find discounts, book a hotel, and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA.com/mobile. Visit AAA on the Internet at AAA.com.