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Palm Coast Monday, Jun. 6, 2022 5 months ago

AAA: $5-per-gallon gasoline is likely

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Florida gas prices have reached record highs and are now 66% more expensive than a year ago.
by: Guest Writer

from: AAA

Florida gas prices are creeping closer to $5 a gallon. The state average jumped 18 cents last week, reaching a new all-time high of $4.76 per gallon on Sunday, June 5.

Florida gas prices are now 66% more expensive than a year ago. It now costs $71 to fill an average size 15-gallon tank of gas. That's nearly $29 more than what drivers paid a year ago. 

"Unfortunately, the pain at the pump is likely to get even worse this week," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "Gasoline made very strong gains in the futures market last week. When that happens, we normally see retail prices rise. It can take days or a week for pump prices to reflect the change, but It wouldn't be a surprise to see retailers raise their prices another 20 cents by Monday night. At this rate, it sure seems like there's very little resistance to rising prices at the pump, and $5 a gallon is quickly becoming a very real possibility this summer."

Crude oil prices rose 3% last week on the futures market. Friday's settlement of $118.87 per barrel was $3.80/b more than the week before. Gasoline future prices increased 24 cents per gallon from the week before, reaching a new all-time record high. Although OPEC+ announced plans to raise oil production by 648,000 barrels per day 

Oil and gasoline futures prices traded significantly higher last week as the European Union's Russian oil ban contributed to ongoing global supply concerns, while expectations of global fuel demand increased after China lifted COVID-19 restrictions in Shanghai.

Additional factors weighing on futures prices include a large draw in gasoline supplies and growing exports, amid rising global competition for fuel. This week's EIA report revealed:

  • U.S. crude oil stocks are 15% below year-ago levels 
  • U.S. gasoline stocks are 6% below year-ago levels
  • Gasoline demand is up 2% from a year ago
  • Domestic refining capacity is down 5% from two years ago
  • Gasoline exports are up 89% compare to this time last year; 37% more than a week ago

Regional Prices

  • Most expensive metro markets – West Palm Beach-Boca Raton ($4.90), Fort Lauderdale ($4.79), Miami ($4.79)
  • Least expensive metro markets – Pensacola ($4.57), Crestview-Fort Walton Beach ($4.59), Panama City ($4.60)

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