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After 32 cent spike, Florida gas prices dropping

CBS News Live
CBS News Miami Live

MIAMI - Florida gas prices are declining again after surging during in the past two weeks. The state average declined almost 2 cents per gallon over the weekend, but more discounts are likely on the way.

"Gas prices soared in recent weeks after winter storms caused temporary refinery outages," said AAA-The Auto Group's Mark Jenkins. "Last week, we saw fuel prices retreat again, as refinery activity ramped back up and the market turned bearish on global fuel demand, due to rising cases of Covid-19 in China. Retail prices could drop 10-20 cents in the coming weeks unless oil prices suddenly rebound."

On Monday, Florida gas prices averaged $3.29 per gallon. That's 9 cents more than this time last year.

In Miami-Dade and Broward, the average was $3.32 a gallon.

In 2022, gas prices reached a new record high of $4.89 per gallon in June. The 2022 low was set on December 26th at $2.99 per gallon.

Gas prices declined through the end of November and much of December. The state average dropped 59 cents per gallon, over the course of six weeks. The state average then rebounded 32 cents per gallon in the final days of 2022 and into 2023.

About half the price of gasoline is set by the price of oil. When gas prices plunged in early December, the U.S. price of oil had fallen from $92 per barrel to $71/b. During the final week of 2022, oil rebounded to $86/b and dragged gas prices up to $3.31/g. The good news for drivers is oil prices plummeted again last week, right back down to the low 70s. This should enable gas prices to drop too.

"Don't expect significant discounts at the gas pump overnight," Jenkins said. "Gas prices always rise like a rocket and fall like a feather. That's because retailers often prefer to offload the more expensive gasoline first, then wait for their next delivery before lowering prices. So it could take a few weeks before retail prices fully adjust to the recent oil price drop."

Regional Prices
Most expensive metro markets for unleaded regular - West Palm Beach-Boca Raton ($3.46), Sebastian-Vero Beach ($3.36), Port St. Lucie ($3.34)
Least expensive metro markets for unleaded regular - Panama City ($3.13), Crestview-Fort Walton Beach ($3.13), Pensacola ($3.14)

Florida Gas Price Overview
Monday's Avg. Price - $3.29 per gallon
Cost for a Full Tank - About $49 (15 gallons)
2022 High - $4.89 per gallon (6/13/22)
2021 High - $3.36 per gallon (Nov. 2021)
All-Time Record High - $4.89 per gallon (6/13/22) 

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