Last Updated: 10:11 a.m.
Regular unleaded gas prices fell to near $3 a gallon in places even in the wake of Hurricane Ian, reaching the lowest levels since January. But the drop is the result of a one-month suspension of the 25.3-cent state gas tax, timed by the Republican-dominated Legislature to coincide with the final month ahead of the 2022 mid-term election. The tax break will result in a small shock on Nov. 1, when prices rise again by that amount.
The suspension of the tax brought average prices across Florida down to $3.26 a gallon on Sunday. But gas prices were declining anyway, and have declined an additional 13 cents a gallon on average, across the state, in addition to the implementation of the tax exemption.
In Palm Coast’s Guzzler’s Alley along State Road 100, for example, prices ranged from $3.13 to $3.39. The Hess station south of Korona, often the station with the lowest gas prices, was at $3.23. Several stations were selling gas for $3.08 a gallon along State Road 40 and I-95 in Ormond Beach. Buc-ees at LPGA Boulevard was selling at $3.25, and Sam’s Club nearby at $3.13, according to prices posted by Gas Buddy Tuesday morning.
“This gas tax builds on the previous downward pressure on pump prices, stemming from global recession concerns and underwhelming fuel demand,” said AAA spokesman Mark Jenkins. “Prices are now beginning to dip below $3 a gallon at various gas stations in the state. While everyone might not be so lucky to see sub-$3 gasoline, all Floridians should expect a sizeable discount this week.”
As commenters note below, the lowering of prices has also been compounded by the largest extended withdrawals of oil from the country’s Strategic Petroleum Reserve in history: “Since Russia’s invasion of Ukraine, President Biden has overseen the largest sale of oil from the Strategic Petroleum Reserve ever, to ease prices at the gasoline pump,” The New York Times reported in late September. “Having released 160 million barrels of crude since March, more than a quarter of the stockpile, the Energy Department has reduced the reserve to its lowest level in four decades. Some oil experts say continuing the withdrawals could test the nation’s energy security.”
Crude oil prices plummeted to $77 a barrel in late September, their lowest level since a December low of $66, but have been edging up since. Today, oil was trading at around $85 a barrel, with gas prices rising across the country to a national average of $3.80, though that average is disproportionately affected by increases in the west of the country: gas in parts of California was selling for more than $6 a gallon due to refineries breaking down.
The Florida Motor Fuel Tax Relief Act of 2022 was part of a larger bill that passed the House and Senate on March 14, 2022. That month, the national gas price average for regular unleaded ended at $4.32 a gallon, on its way to reaching $5 a gallon in June before starting a steady decline. The cut applies to all gasoline products.
But it does not eliminate local-option gas taxes. In Flagler County, for example, the previous state and local tax added $0.34425 to the price of a gallon of gas. In October, it will add $0.09125. The federal tax is an additional 18 cents per gallon. President Biden in late spring was calling for a three-month suspension of the federal gas tax. Legislation was introduced in the House at the end of May to suspend the federal gas tax through December. The bill has not gone anywhere.
In Florida, House Bill 7071 included several temporary tax cuts and some permanent cuts, such as the reduction from 6 to 3 percent in the sales tax on mobile homes and the strange exemption from the sales tax on tickets to Formula One and Daytona 500 races. That exemption also applies to soccer’s World Cup matches, ahead of the 2026 World Cup, which will be hosted by the United States and Mexico. It may have a few matches in Florida.
The bill included tax “holidays,’ such as the 14-day elimination of the sales tax on school supplies, a 14-day exemption on disaster-preparedness items, and two seven-day exemptions on tools and vacation items. The combined tax exemptions diminish revenue by $804 million, including $72 million for local governments. The total tax-cut package, however, including permanent cuts, adds up to a $1.11 billion reduction in revenue. (See a full analysis of the bill here.)
Art Schwartz says
Political stunting right up there with the migrant abuse program!
don miller says
good to know. this is not like Biden’s draining the Strategic Reserves to drive down prices during a midterm year is it?? DeSantis move just a less dangerous to our national security?? Now Biden has to filler back up at higher prices than the oil that he released cost. Nor a very good grasp of economics.
David S. says
Another election move by Deathsantis…
Alphonse Abonte says
Again, not all the facts.
DOE plans to release, from the SPR, up to 2.8 million barrels of sour crude oil and 17.2 million barrels of sweet crude oil, totaling 20 million barrels with deliveries from September 16 until October 21, 2022. It works both ways.
Alphonse Abonte says
Commenter Alphonse Abonte has been banned for a month due to plagiarism. Do not post other people’s work unattributed and pass it off as your own. It’s theft.–FL
Jimbo99 says
After 20 months of Biden inflation, be wary of both sides. Then again Trump told you what prices would be for gas with Biden as POTUS. How did he ever see that coming. Not to worry, I know who bent me over for 20 months to date, also know who was behind the pandemic coup to get Biden elected, I think enough others will remember it too. And the rest of inflation isn’t showing lower prices for the cost of gasoline dropping one bit.
Denali says
Do you honestly believe this drivel you spew?
The ORIGINAL land of no turn signals says
Well we know sleepy Joe wasn’t going to do any thing to reduce what he’s done.
Laurel says
Jimbo99: “…pandemic coup…” Y’all really come up with some stuff. At least you acknowledged that Biden was elected.
Trump is psychic, that’s how he knew what would happen when Biden became President. All Trump has to do is think stuff into reality, you know, like declassify top secret documents with mere thought.
Gas is no longer at a premium, but logic is.
Laurel says
What really bothers me about both Democrats and Republicans is that we are still dependent on oil. Big oil companies donate big money to campaigns. The biggest source of energy rises in the morning and sets in the evening, yet it shines on the Earth 24 hours a day. Apparently, that is a riddle to some.
Florida Voter says
Anyone want to bet against me: I think that between Nov. 1 and Nov. 8 (when gas prices jump back up just before the election) DeSantis and many of the Republican candidates will blame Biden and “The Dems” for that price increase, not the fact that the tax waiver expired.
I’m willing to wager a full fledged “I guess you were right.” Any takers?
Justsayin says
Not only that, now OPEC is going to cut production to increase the price of oil just in time of the SPR getting restocked. What a deal maker old Joe is.
Nephew of Uncle Sam says
Nothing more than a political stunt for the poser “governor” and his GOP Legislature. Money that came from the Covid relief funds and was not meant for political stunts.
joe says
“..also know who was behind the pandemic coup to get Biden elected,..”
Today’s winner in the Trump/FOX News bullshit contest.
Michael Cocchiola says
Jimbob… first you complain about high gas prices and demand that President Biden do something, then you complain when he uses the only tool he has to lower prices. Now you have sunk deeply into the Conspiracy Pit of Hell about a pandemic conspiracy to get President Biden elected. Can you tell us how that worked?
Steve says
False information, misinformed, disinformation. Don’t expect anything less from your Posts WTG. At least you are consistent
Wallingford says
Thank you President Biden
John J says
The author and commentators support the author are just dead wrong.
Firstly, WTI has dropped from $123 a barrel to $76 a barrel. It’s now around $86 a barrel. This is the main reason for the drop in gas prices. Why the drop? Recessionary fears and demand.
Secondly, Biden is draining the SPR to the tune of 1 million barrels a day increasing supply in an effort to keep the gas prices down.
If there is any political stunt is on the Biden Administration in an effort to affect the outcome of the midterms.
feddy1 says
Hey now he is a great deal maker, that’s why he sold oil from our Strategic Reserves to China. After the midterms prices will shoot back up to 4.50 or higher.
raw says
For What?????
Laurel says
John J: They all do it. Just some stunts are worse than others, like misleading legal immigrants to ship them elsewhere from Texas on Florida’s dime. That one stinks.
Timothy Patrick Welch says
Funny…
how oil is still used as a tool to control the masses.
Let’s pray that another world war is not created because of it.