AAA: Gas Prices in Florida Could Fall Below $2 a Gallon as Oil Prices Plummet

Expect lower gas prices in the Sunshine State, including the possibility of paying less than $2 a gallon, AAA announced this week.

AAA released a study on Monday which showed the impact dropping oil prices could have on Florida.

“Florida gas prices should go even lower this week, potentially sinking below $2 per gallon in some markets. Crude and gasoline futures prices were sent into a tail-spin overnight, hitting lows that haven’t been seen since 2016,” AAA noted.  “Just two weeks ago, the price of crude traded for more than $53 per barrel. Sunday night, it was around $33/b. Crude prices have been reeling during the past two weeks, as coronavirus concerns have led to lower global demand for jet fuel and gasoline.”

“OPEC and its allies met on Friday in hopes of cutting oil production to offset the dipping demand. Not only did they not make a deal, it now appears that all parties will not extend their existing production cut agreement. What this means is even more oil hitting the market at a time that demand is falling. By the end of Friday, crude had lost more than 20 percent in value, declining a total of $12 per barrel in two weeks,” AAA added. “Late Sunday night, fuel markets were dealt another heavy blow. Crude oil (WTI) plummeted an additional 20 percent on the expectation that Saudi Arabia plans to boost production and begin a price war with Russia. As of this writing Sunday night, WTI crude was trading for around $33 a barrel, after briefly hitting $29.50. Gasoline futures also lost significant value on the stock market, dropping more than 20 cents per gallon.”

In the meantime, the average gallon of gas in Florida cost $2.28 on Sunday, below the national average of $2.39 a gallon and down from the start of the month when the average gallon of gas cost $2.35 in Florida. But AAA expects prices at the plump across Florida to plummet in the coming days.

“At the rate fuel prices are falling on the stock market, Florida drivers could easily begin seeing sub-$2 gasoline this week,” said Mark Jenkins, a spokesman for AAA and the Auto Club Group. “The only potential upward pressure on pump prices is spring maintenance season. If the state average eventually drops below $2 per gallon, it would be the first time in four years. How long this holds or how low prices go will rely on where stock market prices go from here.”

The West Palm Beach-Boca Raton market had the most expensive gas in the state with an average of $2.44 a gallon followed by Gainesville at $2.40 a gallon and Panama City at $2.37 a gallon.

Orlando had the least expensive gas in Florida at $2.18 a gallon followed by Jacksonville at $2.19 a gallon and the Villages at$2.20 a gallon.

 

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