Fuel prices plunging

Gas prices could hit $2 this summer

By Bruce Hamilton - The Morning Show anchor
Headline Goes Here

TAMPA, Fla. - Florida gas prices are falling at a steady rate of 0.5 to 1-cent a day. That downward trend is likely to continue and deliver big discounts at the pump, based on major swings in the fuel markets this week.

"A lack of confidence in crude has led to a downturn in oil prices," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "The price of WTI hit its lowest daily settlement since the day before OPEC announced an agreement to cut production back in November. The effects of OPEC's production cuts have since been offset by increased oil production from the U.S., Canada, Nigeria, and Libya.

"Meanwhile, the wholesale gasoline market is getting hammered this week, due to nearly record-high refinery operations and demand levels that were weaker than expected. Wholesale gasoline prices finished Thursday down 20 percent from the highs seen in April. These falling rack prices will continue delivering steady discounts at the pump, and the state average should push down below $2.30 in the next week or two, rivaling the $2.25 price tag last Memorial Day. If current wholesale and spot prices stick around, motorists could start seeing various Florida service stations selling gasoline near $2 a gallon by the summer."

On Thursday, Florida gas prices averaged $2.39 - according to data provided by AAA (click here to get the current average). Since peaking at $2.47 in April, the state averaged has declined for 13 consecutive days, for a total discount of 7 cents during that time. The Florida average is 5 cents less than a week ago, but remains 17 cents more than this time last year. Gas prices on Cinco de Mayo averaged $2.22 in 2016, $2.58 in 2015, and $3.70 in 2014.

  • The most expensive metro markets are West Palm Beach ($2.48), Fort Lauderdale $2.43), and Miami ($2.42)
  • The least expensive metro markets are Pensacola ($2.35), Orlando ($2.36), Sarasota/Bradenton ($2.37), and Tampa/St. Petersburg ($2.37)

 

CURRENT AND PAST PRICE AVERAGES

Regular Unleaded Gasoline

Sunday

Saturday

Week Ago

Month Ago

One Year Ago

Highest Price on Record

National

$2.367

$2.372

$2.403

$2.333

$2.223

$4.114 (7/17/2008)

Florida

$2.392

$2.399

$2.440

$2.306

$2.219

$4.079 (7/17/2008)

Click here to view current gasoline price averages

 

 

Fuel Fundamentals
(Based on weekly data provided by the EIA)

  • Crude oil prices settled at $45.52 on Thursday - the lowest daily settlement since November.
  • Crude inventories reduced by 0.1 percent
  • Crude production increased 0.3 percent
  • Refineries let off the accelerator slightly, reducing operations by nearly 1 percent
  • Wholesale gasoline prices are down 20 percent from the highs established in mid-April
  • Gasoline demand remains underwhelming; dropping a half percent in the last week, logging the third week of declines
  • Gasoline supply grew 1-percent compared to the week before
  • Gasoline production increased 0.75 percent