The deal should not have an immediate impact on gas prices
The plunge at the pump continued last week, with Florida gas prices falling another 6 cents. How much lower gas prices go will depend on how the market responds to a historic deal made by OPEC and its oil producing allies over the weekend.
On Sunday, OPEC and its allies agreed to cut oil production by 9.7 million barrels per day - the single largest output cut in history. This effectively ends a price war that broke out between Saudi Arabia and Russia, which caused an overnight 25% reduction in oil prices last month. From there, the downward trend continued as the effects of the coronavirus impacted the global economy and forced Americans to stay off the road.
In total, oil prices are down 56 percent since February 21. During that time, the price of crude plummeted from $53 per barrel to $23/b. Florida gas prices also dropped 56 cents. This deal is an attempt to help eliminate supply surpluses and strengthen the price of crude.
"The OPEC deal should not cause gas prices to suddenly spike, but it will affect how low they can go," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "Wholesale gas prices suggest the state average could eventually reach $1.50 or below, but that won’t happen if oil prices gain upward momentum."
In Florida alone, gasoline demand is down as much as 50 percent in large cities, as residents self-isolate at home. The longer demand is down, the more crude and gasoline supplies will build; and it will take some time for drivers to work through all that, once the stay-at-home orders are lifted. As of this writing, the US benchmark for oil prices increased by more than $1.50 per barrel in overnight trading.
Florida Gas Price Summary
- 91% of Florida gas stations have pump prices below $2 a gallon.
- The state average of $1.85 per gallon is 6 cents less than a week ago, and 95 cents less than last year.
- A full tank of gas now costs $27.75. Last year, drivers paid $42 for a full tank.
- View state and local gas prices
- Most expensive metro markets – Gainesville ($2.05), West Palm Beach ($2.02), Miami ($1.97)
- Least expensive metro markets – Jacksonville ($1.72), Panama City ($1.73), Punta Gorda ($1.74)
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
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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, 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.