Average FL Gas Prices Down Another 15 Cents: AAA

FLORIDA — Florida gas prices dropped another 15 cents last week. The state average is now on a five-week streak of declines, falling a total of 62 cents per gallon, according to AAA.

Sunday, the average price for gasoline was $4.27 per gallon. This time last year, the price was $3 a gallon. On average it costs $64 to fill an average-sized 15-gallon tank of gas. That’s $9 less than what drivers paid when gas prices hit their peak of $4.89 in mid-June.

"For the first time in a couple months, drivers in some Florida cities are beginning to find pump prices below $4 a gallon," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "Oil prices suffered significant drops last week, clearing the way for additional discounts at the pump."

Jenkins said that while global supplies remain an ongoing concern, the U.S. Energy Information Administration reported a steep drop in domestic gasoline demand.

While this might be an anomaly, he added that the market seems to be taking it as an indicator that Americans could be shifting driving habits in response to high prices. Meanwhile, concerns about a new strain of COVID-19 and potential lockdowns in China, have reenergized global demand concerns.

"Drivers are likely relieved to get a break from record-high prices, and prices could get even cheaper this week," Jenkins said. "However, it’s important to remember that the market remains extremely volatile, and prices have the potential to bounce back. That particularly applies to hurricane season. If a major storm makes landfall along the gulf coast, impacting operations at refineries in Texas, Louisiana, or Mississippi, prices could spike, due to concerns about fuel supplies."

Last week, the U.S. price of oil dropped nearly $10 a barrel, but recovered a couple bucks by the end of the week. Friday’s closing price of $97.59 per barrel is $7.20 per barrel (7%) less than the week before.

According to AAA, that’s a far cry from where oil prices were a little more than a month ago. On June 8, the U.S. price of oil settled at a monthly high of 122.11/b. That drove the state average to a new record high of $4.89 per gallon. As a reminder, the price of oil accounts for about half the price of gasoline. When oil prices drop, so do gas prices.