FL Gas Prices Hit Another Record High Amid Strong Demand: AAA

FLORIDA — Although Florida reached a new record high average gas price of $4.49 per gallon Sunday, Floridians will likely continue to see prices climb until the end of the year, according to an AAA news release.

This new record price beats the previous record of $4.38 per gallon for a regular gas set on March 11 soon after Russia invaded Ukraine, AAA said.

"Drivers are dealing with unprecedented pain at the pump and things could soon get worse before they get better," said Mark Jenkins, Florida AAA spokesman. "We saw more big gains in the gasoline futures market late last week, which could trickle down to yet another 10-20 cent jump at the pump in the near future."

Florida's average price jumped about 30 cents last week, Jenkins said.

Drivers can expect to pay about $67 for a full 15-gallon tank of gas; that's $24 more than what drivers paid this time last year, an AAA news release said.

High gas prices aren't likely to deter travelers planning trips that were pushed back from the COVID-19 pandemic, according to a recent AAA Travel poll. In a survey of 8,801 people in 12 states, AAA found 90 percent of those planning a trip will travel within the U.S.

In addition, nearly half plan to go on multiple trips. Road travel will be the main mode of transportation for travelers, but air travel is also expected to increase.

As gas prices soar, AAA members can use the AAA Fuel Finder or use the AAA mobile app to find the lowest prices. Another option for checking gas prices by ZIP code or town is Gas Buddy.

What's Driving Rising Gas Prices?

Global fuel supplies are tight; keeping upward pressure on oil prices (which account for more than half the price of gasoline), according to AAA.

• The price of U.S. oil closed at $110.49 per barrel on Friday (69 percent more than this time last year).
• The fuel market was tight heading into 2022, as many oil-producing countries had yet to return to pre-pandemic levels, even as demand rebounded.
• The Russian invasion of Ukraine compounded the problem, as the oil market effectively cut out one of its largest oil exporters in the world (Russia).
• Fuel price gains accelerated even more during the past couple of weeks when the European Union announced plans to ban Russian oil by the end of 2022. The primary market driver of this news is that these countries are heavily reliant on Russian fuels, and will now have to find alternative sources in what is already a tight global fuel market.

Oil prices are not at record highs, but gasoline futures are. U.S. gasoline supplies are declining as international demand for U.S. gasoline grows, all while the market braces for a summer driving season that is stronger than last year, according to AAA.

• U.S. gasoline supplies have dropped 6 percent over the past six weeks.
• U.S. gasoline exports are 20 percent stronger than this time in May 2019, due to strong international demand for gasoline.
• The increased competition - both domestically and abroad - has driven up the bidding price for each barrel of fuel.
• While all this plays out on a global scale, the U.S. fuel market is bracing for the summer travel season, and analysts expect gasoline demand to be stronger than last year.

When Will Gas Prices Get Better For Floridians?

According to the International Energy Agency, sky-high fuel prices will likely cause U.S. oil production to return to pre-pandemic levels by the end of 2022.

The latest reading provided by EIA shows that U.S. oil production is at 11.8 million barrels per day, which is about 10 percent below the pre-pandemic record-high of 13.1 million barrels per day.

A return to previously record-high production levels could cool the fuel market and lead to lower prices. However, given the recent shifts in global supply and demand, it may not immediately signal a return to $2 per gallon of gasoline, according to AAA.

"Unfortunately, $4 gasoline is likely to be that unwelcome passenger on most Florida summer road trips," Jenkins said. "At this point, the state average is not expected to exceed $5 a gallon. However, the fuel market is extremely unstable and things are changing by the day. Either way, drivers should expect gas prices to keep fluctuating throughout the summer and potentially the rest of the year."

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