Oil prices surged Friday, which could contribute to higher prices at the pump
Drivers could see gas prices rise as tensions grow in the Middle East. The situation has already led to higher crude oil prices, which typically raises the cost of producing gasoline.
Florida gas prices climbed an average of 7 cents per gallon in the past three days. That increase was set into motion before the US air strikes last week, by crude price hikes that occurred in December.
Once news broke that the US carried out attacks on Iran, crude prices surged nearly $2 per barrel on Friday. An increase of that magnitude can directly trigger a 5 cent hike at the pump. The US benchmark for crude (WTI) eventually settled at $63.05 per barrel - the highest daily settlement since May 2019. It’s worth reporting that some of this increase was influenced by another week of lower US crude inventories; but the situation in the Middle East was the top story.
"What happens in the Middle East can have a direct impact on Americans’ daily lives, by influencing what they pay at the pump," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "Many people don’t realize that half of what they pay for every gallon of gasoline is determined by the price of oil. Even though the US is producing oil at a record pace, that oil is bought an sold on the stock market, which is heavily influenced by global supply and demand. Crude prices rise when there’s a threat of war, because of concerns over how the conflict could hamper supply and demand.
"It’s still far too early to know how much of an impact this conflict will have overall on prices at the pump," Jenkins continued. "We’ll likely have a better idea early this week. Some analysts are anticipating a ’Manic Monday’ on the stock market, with many financial and physical traders returning from vacation. Either way, volatility should be expected with both oil and gasoline through January, at the very least. If geopolitical tensions continue to escalate, crude prices may rise and drag gasoline along for the ride."
Florida drivers are currently paying the highest prices for gasoline since early December. The state average of $2.53 is 30 cents per gallon more than this time last year. The reason for this disparity can be found in the price of oil, which is currently $20 per barrel more than it was in January 2019.
As a result, gas prices are off to their most expensive start to a new year since 2014.
- Most expensive metro markets – West Palm Beach-Boca Raton ($2.63), Pensacola ($2.56), Port St. Lucie ($2.56)
- Least expensive metro markets – Jacksonville ($2.49), Orlando ($2.50), Fort Myers-Cape Coral ($2.50)
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||
|2018 High||Record High|
|National||$2.585||$2.585||$2.578||$2.595||$2.245||$2.895||$2.97 (5/26/2018)||$4.11 (7/17/2008)|
|Florida||$2.526||$2.521||$2.459||$2.533||$2.132||$2.795||$2.92 (5/25/2018)||$4.08 (7/17/2008)|
|Georgia||$2.463||$2.459||$2.423||$2.437||$2.059||$2.735||$2.84 (5/27/2018)||$4.16 (9/15/2008)|
|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. ACG and its affiliates provide membership, insurance, banking and 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.