Scott Powers
The price of gasoline continues to dive, falling 3 cents per gallon last week and reaching a state average of $1.82 per gallon in Florida Sunday, according to the AAA — The Auto Club Group.
That’s good news for people who still drive enough to need to buy more gas. But that’s the issue: not many people need it.
AAA reports Monday morning that fuel demand has dropped 60% in the past month.
“Gas prices continue moving lower as COVID-related state lockdowns keep Americans off the road, leading to lower demand for gasoline,” Mark Jenkins, spokesman, AAA — The Auto Club Group stated in a news release. “Nationwide, implied demand for gasoline has fallen nearly 60%. With fewer drivers on the road, refiners are reducing output. Crude oil prices sank to new lows last week, amid continued uncertainty of when conditions will return to normal. Meanwhile, wholesale gasoline prices remain at lows that could allow the state average to eventually sink to the $1.50s.”
Most signs point to a continued decline in gas prices even though Saudi Arabia and Russia reached a tentative deal at the beginning of last week to reduce production.
According to AAA, crude oil sank to the lowest price since January, 2002. The price of U.S. crude oil settled at $18.27 per barrel on Friday. Oil production fell 5% in the past two weeks. Refinery activity declined 23% in the past two weeks. Gasoline stocks are up nearly 10% in the past two weeks. Gasoline production declined nearly 50% in the past month
In Florida, on Sunday, the best gas deals could be found in Jacksonville, where gas was selling for an average of $1.66 per gallon; Punta Gorda, $1.69; and Panama City, $1.70.
The most expensive Sunshine State gasoline was being sold in West Palm Beach, averaging $1.99 a gallon; Gainesville, also $1.99 a gallon; and Fort Lauderdale, $1.94.
A month ago gas sold for an average of $2.12 per gallon in Florida. A year ago, the average price was $2.76.
