Gasoline futures rose again; another pump price hike is possible this week
Florida gas prices surged again early last week, jumping another 15 cents per gallon. The state average is now $2.87 per gallon - the highest daily average price since June 2018.
"Global and domestic supply and demand continues to be the story behind rising prices at the pump," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "Global crude oil supply is tightening after OPEC+ extended production cuts beyond April. Domestically, gasoline demand is beginning to rise, while gasoline supplies lag behind due to refinery outages caused by the arctic weather that hit Texas last month. Unfortunately, we may be in store for another round of increases. Although crude prices held mostly steady last week, gasoline futures and wholesale prices rose 10 cents due to market optimism that gasoline demand will continue to grow. It’s possible that increase in futures prices could cause another price hike this week, dragging the state average even closer to $3 a gallon."
Florida’s average price has increased 67 cents per gallon since starting the year at $2.20. The main driver of that increase has been the price of crude oil, which increased nearly 40% since January 1.
Here’s the breakdown of what has contributed to rising prices this year:
- Tightening global crude oil supplies. OPEC+ and other countries reduced production during the past year to soak up the glut that was left by the pandemic. OPEC+ recently announced plans to extend production cuts beyond April.
- Tightening domestic gasoline supplies. Gasolines supplies dropped 10% in the past two weeks, following the mid-February arctic blast that caused power outages to refineries in Texas and other states. US refinery operations dropped 32%, according to the EIA. Although refineries are working to ramp up operations, they’re still down 17%.
- Rising demand. Gasoline demand climbed 20% in the past two weeks, according to data from the EIA. That figure remains 15% below pre-pandemic levels.
- Market optimism. Investors have become extremely optimistic about the long term future of gasoline demand. The belief is that as vaccinations become more widespread, Americans will be more confident about a return to normal driving and travel habits. Struggling supplies is an added incentive for buyers.
- Most expensive metro markets – West Palm Beach-Boca Raton ($2.97), Miami ($2.91), Ft. Lauderdale ($2.90)
- Least expensive metro markets – Pensacola ($2.80), Crestview-Fort Walton Beach ($2.81), Panama City ($2.81)
Find Florida Gas Prices
- Daily gas price averages can be found at Gasprices.aaa.com
- State and metro averages can be found here
AAA GAS PRICE AVERAGES
|Sunday||Saturday||Week Ago||Month Ago||One Year Ago||Record High|
|Click here to view current gasoline price averages|
Gas Price Survey Methodology
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 with more than 14 million members across 14 U.S. states, the province of Quebec and two U.S. territories. ACG and its affiliates provide members with roadside assistance, insurance products, banking and financial services, travel offerings and more. ACG belongs to the national AAA federation with more than 60 million members in the United States and Canada. AAA’s mission is to protect and advance freedom of mobility and improve traffic safety. For more information, get the AAA Mobile app, visit AAA.com, and follow us on Facebook, Twitter and LinkedIn.