Floridians are paying more at the pump because of supply issues caused
by the winter weather on the Gulf Coast.
Floridians were paying an average of $2.87 for a gallon of regular unleaded gasoline Monday morning, the highest since June 2018 according to the American Automobile Association.
“Global and domestic supply and demand continues to be the story behind rising prices at the pump,” said Mark Jenkins, a spokesman for AAA. “Although gas prices normally increase in the spring, the price hike is especially pronounced this year, as global crude supplies tighten and domestic refinery issues lead to reduced gasoline supplies.
“Unfortunately, the pain at the pump may get a little worse before it gets better. Gasoline futures and wholesale prices rose another 10 cents late last week. The increase is said to be based on optimism that gasoline demand will continue to grow. It’s possible that increase could cause gas prices to rise again this week, dragging the state average even closer to $3 a gallon, said Jenkins.”
Gasoline supplies dropped 10% in the past two weeks, following the mid-February arctic blast that caused power outages to refineries in Texas and other states. U.S. refinery operations dropped 32%, according to the U.S. Energy Information Administration (EIA). Although refineries are working to ramp up operations, they’re still down 17%.
Part of the reason for the rise is the winter weather that sapped power from refineries in Texas and neighboring states, says Mark Jenkins.
“This pump price hike is similar to what you’d expect if a hurricane struck the Gulf Coast region,” Jenkins said. “Just like the aftermath of a hurricane, workers are working to return to normal operations. Any reports of extended downtime or significant supply impacts could cause another round of rising prices.”
Gas Prices, from the Petroleum Administration for Defense Districts.
Florida’s average price has gone up 67 cents per gallon since beginning the year at $2.20. The main driver of that increase, Jenkins says, has been the price of crude oil, which increased nearly 40% since Jan. 1.
The national average price per gallon on Monday morning was $2.86.
South Florida’s gas prices are higher than the state and national averages. According to AAA, on Monday morning the average cost was:
$2.917 in Miami-Dade County
$2.899 in Broward County
$2.969 in Monroe County
$2.972 in Palm Beach County
For more info on Florida gas prices, click here
At the start of 2021, Floridians were paying an average of $2.20 per gallon. Experts have continued to say that the recent rise in gas prices is not a reflection of Joe Biden taking over the White House.
While Biden’s policies could eventually lead to higher prices, the recent increases have been about supply and demand, says Patrick De Haan, an analyst for Gas Buddy.
Gas prices are up, but not because of the new administration.
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