Gas prices in the Sunshine State increased 12 cents a gallon last week, marking the highest they have been in Florida since the end of 2014.
According to AAA, on Sunday, the average gallon of gas in Florida cost $2.97 while the national average stood at $3.08 a gallon.
“The state average jumped 12 cents last week, following significant gains in the prices of crude oil and gasoline futures, as the recovery in global fuel demand outpaces supply,” AAA noted on Sunday. “Florida drivers are now paying the most expensive prices at the pump since November 2014. The state average of $2.97 per gallon is 12 cents more than a week ago, 7 cents more than a month ago, and 44 cents more than this time in 2019. Pump prices are now averaging 6 cents more than the previous 2021 high – set back in March. It is also 5 cents more than the highest price in 2018.”
“It now costs $2 more to fill an average-sized 15-gallon gas tank, than it did a week ago,” said Mark Jenkins, a spokesman for AAA and the Auto Club Group. “Fortunately, futures prices flattened out last week, so drivers should not face another round of rising prices this week.”
The West Palm Beach-Boca Raton area had the most expensive gas in the state with an average of $3.08 a gallon followed by Panama City at $3.06 a gallon and Tallahassee at $3.02 a gallon.
Punta Gorda had the least expensive gas in the state at $2.93 a gallon, followed by Orlando, Jacksonville and the Fort Myers-Cape Coral area at $2.94 a gallon and the Tampa Bay region at $2.96 a gallon.
AAA pointed to figures from the U.S. Energy Information Administration (EIA)
“The recent jump at the pump has largely been driven by the rising price of crude. EIA forecasts in the June release of its Short-Term Energy Outlook (STEO) that global crude oil prices will stabilize in mid-2021, then average $8 per barrel less in 2022,” AAA noted.
“In the coming months, we expect global oil production to catch up with the increases we’ve seen in demand in 2021,” said EIA Acting Administrator Stephen Nalley. “U.S. and global oil producers are increasing their production, which should help moderate oil prices that have increased significantly as global economic concerns about the COVID-19 pandemic have begun to ease.”
“The EIA expects global petroleum consumption to grow by 6 percent in 2021 and increase another 4 percent in 2022,” AAA noted. In response to this increase in global demand, the EIA expects domestic and global oil production will increase – in the coming months – to match rising levels of global oil consumption and contribute to declining oil prices. The rising oil production in the forecast is largely a result of the OPEC+ decision to raise production. The EIA also expects US producers to drill and complete enough wells to raise 2022 production from 2021 levels.”