New records are being set again in Florida, and not in a good way. The state average price for gasoline reached a new record high of $4.49 per gallon on Sunday. The national average was one cent less. This beats the previous record of $4.38 per gallon set back in March (soon after Russia invaded Ukraine). Before this year, the record high was $4.08 per gallon, which was set back in 2008, according to AAA.
In Palm Coast, gas today was selling at $4.49 a gallon at Wawa and both RaceTrac stations on State Road 100. It was selling at $4.51 at the Shell closer to Flagler Beach, and $4.49 almost everywhere else in the city.
But inflation-adjusted figure suggest the prices are not yet at all-time highs: prices hit $4.39 a gallon in 2012 (when the average for the year was $3.99), and $4.21 in 1981, in inflation-adjusted dollars (and $4.70 in 1918, though at that point the comparison loses validity: the economy was not yet as dependent on oil, nor Americans as dependent on cars, as they have been since).
Still, current trends make $5-a-gallon gas a possibility before prices ease, especially with Memorial Day’s driving-heavy holiday ahead and oil companies’ tendency to press a profitable pedal of their own around that time. Example: even as stocks have generally been selling off, Exxon stock is up 46 percent over the year, Chevron stock is up 56 percent, Mobil is up 46 percent.
Florida’s average price jumped about 30 cents in the past week. The state average is now $1.60 per gallon more than a year ago. It now costs $67 for a full 15-gallon tank of gas. That’s $24 more than what drivers paid this time last year, according to AAA.
“Drivers are dealing with unprecedented pain at the pump and things could soon get worse before they get better,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “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.”
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).
- The price of U.S. oil closed at $110.49 a 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 weeks, when the EU 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.
- 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.
Is there a light at the end of the tunnel?
The International Energy Agency forecasts that sky-high fuel prices will cause U.S. oil production to return to pre-pandemic levels by the end of 2022. According to latest reading from the EIA, 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 a gallon gasoline.
“Unfortunately, $4 gasoline is likely to be that unwelcome passenger on most Florida summer road trips,” Jenkins continued. “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.”
Regional Prices
- Most expensive metro markets – West Palm Beach-Boca Raton ($4.63), Fort Lauderdale ($4.55), Sebastian-Vero Beach ($4.53)
- Least expensive metro markets – Pensacola ($4.28), Panama City ($4.29), Crestview-Fort Walton Beach ($4.30)
Ways to Save on Gasoline
- Combine errands to limit driving time.
- Shop around for the best gas prices in your community.
- Pay with cash. Some retailers charge extra per gallon for customers who pay with a credit card.
- Remove excess weight in your vehicle. Every 100 pounds taken out of the vehicle improves fuel economy by 1-2 percent.
- Drive conservatively. Aggressive acceleration and speeding reduces fuel economy.
- Daily gas price averages can be found at Gasprices.aaa.com
- State and metro averages can be found here
| AAA GAS PRICE AVERAGES (Price per gallon of regular unleaded gasoline) |
 |
Sunday | Saturday | Week Ago | Month Ago | One Year Ago | Record High |
| National | $4.470 | $4.452 | $4.317 | $4.073 | $3.042 | $4.33 (3/11/2022) |
| Florida | $4.494 | $4.486 | $4.204 | $4.006 | $2.894 | $4.38 (3/11/2022) |
| Georgia | $3.985 | $3.971 | $3.835 | $3.710 | $2.971 | $4.29 (3/11/2022) |
| Click here to view current gasoline price averages | ||||||
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.
Reader Interactions
Comments
Leave a Reply
This site uses Akismet to reduce spam. Learn how your comment data is processed.
Jimbo99 says
Biden’s unaffordable energy policy in action. The only way out of this inflation is to remove that cancer of a chronic Delaware liar in 2024.
greg says
Sorry to insert facts into your MAGA world Jimbo, but Biden has nothing to do with it. The US is essentially energy independent and was a net exporter in 2020 and 2021. Not to mention that energy prices are set on a global basis. You should have paid more attention in class.
Jimbo99 says
Biden’s unaffordable energy policy in action.
DaleL says
greg is correct. As this story says, the Russian Federation reopened its war of aggression against Ukraine. This has caused both a jump in world oil prices and more importantly gasoline futures. Russia launched its renewed war on February 24. Within two weeks the average price of gasoline went from $3.47 a gallon to $4.38. On top of this, is our resurging economy which is ‘driving’ increased fuel consumption.
Unfortunately, during the worst years of the COVID-19 pandemic, the opposite occurred. This caused gasoline prices last year to be unusually low.
Dennis C Rathsam says
GAS IS $4.22 at SAMS CLUB!!!!!!
Mark1 says
They will complain about gas prices Yet they will still vote for the Republicans responsible. Merica.
Steve says
Then pray tell, Why were gas prices lower during the Trump (R) years, & higher during the biden (D) years?
Land of no turn signals says says
That’s one way to crash the economy.
Deborah Coffey says
Well, we’ve got a Republican governor and a Republican legislature. Republicans keep saying THEY could fix this. Well then, why don’t they fix it? LOL. Because they’re liars and they know they can’t. Gas prices are set globally, while Big Oil is raking in huge profits. Which political party does all the deregulating and takes all the donor money from Big Oil? Oh, the GOP.
DaleL says
Four years ago, I bought a Honda Clarity PHEV. My neighbor across the street drives a Camry Hybrid. Our cars both get about 42 mpg. My Clarity will go 40 to 45 miles before the engine even needs to run. There is nothing which requires people to buy and drive vehicles with massive engines that get mpg in the teens. Ford even sells a hybrid F-150 which is rated at 24 mpg. The hybrid is rated at 430 system horsepower and 570 pounds-feet of torque.
I do feel a bit sad for struggling people who are driving vehicles that get poor fuel economy. However, many of those same people chose to buy a vehicle based more on performance and size, rather than on fuel economy. Every new car and truck has a very prominent sticker which displays that vehicle’s expected fuel economy.
I am also amazed at the number of drivers of vehicles (mostly pickup trucks) who waste gasoline by accelerating rapidly, driving fast, and stopping quickly.