AAA REPORT: Crude Oil Price Plunge Lowers Gas Prices, Florida Still Higher Than National Average

By  //  February 13, 2018

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Florida gas prices averaged $2.65 on Sunday

Energy prices took a nosedive on the stock market last week and gas prices are declining as a result. Florida gas prices are four cents more than this time last week, but pump prices are quickly moving lower.

(AAA) –Energy prices took a nosedive on the stock market last week and gas prices are declining as a result. Florida gas prices are four cents more than this time last week, but pump prices are quickly moving lower.

The state average rose seven cents early last week, then declined by a penny per day, each of the last three days. Florida gas prices averaged $2.65 on Sunday; a 20 cent increase from a month ago, and 37 cents more than this time last year.

The most expensive gas price averages in Florida are in West Palm Beach-Boca Raton ($2.74), Naples ($2.69), and Sebring ($2.68). The least expensive gas price averages in Florida are in Pensacola ($2.57), Tallahassee ($2.57), and Panama City ($2.58).

So far, gas prices have averaged their highest for the month of February in four years. Florida is 13th among states with the most expensive gas prices in the country.

“Gas prices have the potential to drop 10-15 cents, based on what happened last week,” said Mark Jenkins, spokesman, AAA – The Auto Club Group.

“However, refinery maintenance season is fast approaching and could spoil this big break for motorists. Every year – from February to April – reduced refinery output and the switch to summer-blend gasoline normally causes gas prices to rise 30-70 cents. Additional drops in oil prices would help soften the impact maintenance season has on prices at the pump. Expect volatility at the pump as these forces collide.”

U.S. Oil Production Reaches Record Highs 

Crude oil plunged to its lowest price of the year, last week, dramatically reducing the cost of producing gasoline.Friday’s closing price of $59.20/b is down $6/b from the week before, and the lowest daily settlement since December.

The downturn for energy prices began on Wednesday when the EIA’s weekly report revealed significant gains in domestic production and inventories. Domestic oil production surged to 10.25 million barrels per day – a new record for weekly production.

This was the first time U.S. output exceeded 10 million barrels a day since 1970. As crude production roared higher, U.S. crude inventories swelled by 1.9 million barrels.

Average Gas Price in February
2014 2015 2016 2017 2018
National $3.34 $2.23 $1.73 $2.28 $2.60
Florida $3.38 $2.28 $1.77 $2.28 $2.64
Georgia $3.22 $2.16 $1.67 $2.19 $2.48
Tennessee $3.15 $2.07 $1.54 $2.06 $2.41

This was the 2nd consecutive week of inventory gains, after declining 11 weeks in a row. At 420.3 million barrels, domestic oil supplies are 0.5 percent higher than a week ago, but remain 4 percent lower than this time last year. Regardless, the inventory growth was one of the fundamental reasons for the oil price drop.

Gasoline futures lost significant strength last week, dropping 15 cents to $1.70 on Friday. Since hitting a multi-year high of $1.93 on January 29, futures gasoline dropped a total of 23 cents.

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Gas Price Tools for Reporters/Consumers

  • GasPrices.AAA.com – Daily national, state, and metro gas price averages.
  • AAA Mobile app – Free app that shows current prices at a gas station near you.

Highs and Lows of 2017*

  • National: the highest average price for gasoline was $2.67 on September 8. The lowest was $2.23 on July 5.
  • Florida: the highest average price in was $2.73 on September 9. The lowest was $2.13 on July 17.
  • Georgia: the highest average price was $2.76 on September 12. The lowest was $2.08 on July 5.
  • Tennessee: the highest average price was $2.60 on September 10. The lowest was $1.99 on July 5.

CURRENT AND PAST PRICE AVERAGES  (Regular Unleaded Gasoline)

Sunday Saturday Week Ago Month Ago One Year Ago Highest Price on Record
National $2.583 $2.589 $2.604 $2.508 $2.279 $4.114 (7/17/2008)
Florida $2.650 $2.660 $2.610 $2.446 $2.279 $4.079 (7/17/2008)
Georgia $2.461 $2.468 $2.490 $2.398 $2.181 $4.164 (9/15/2008)
Tennessee $2.392 $2.396 $2.411 $2.299 $2.054 $4.118 (9/15/2008)

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