Florida gas prices rise 10 cents, likely to increase more on OPEC+ production cuts

There's just a little less pain at the pump lately.

Florida gas prices rose 10 cents per gallon last week and will likely increase far more, thanks to oil production cuts by Saudi Arabia and other OPEC+ members.

By Monday, the average price at the pump across the Sunshine State was $3.47 per gallon, a price point that all but erased a modest dip in fuel prices motorists enjoyed the week prior.

Saudi Arabia and other OPEC+ countries announced surprise plans Sunday to cut oil production by about 1 million barrels daily beginning in May. The Saudi Energy Ministry called the move a “precautionary measure” meant to stabilize the oil market.

That alone could push U.S. gas prices up 26 cents per gallon beyond the price increase that typically accompanies the seasonal shift to “summer gasoline” that refineries make during the warm driving season, Kevin Book, managing director of Clearview Energy Partners LLC, told the Associated Press.

Book said the U.S. Department of Energy calculates the seasonal increase at an average of 32 cents per gallon, meaning motorists could soon see gas prices skyrocket by nearly 60 cents per gallon.

But Book added that there are several variables to consider, including how long the cut takes to become fully effective and if it coincides with falling U.S. demand.

Saudi Arabia plans to cut production by 500,000 barrels per day in addition to a 2 million barrel-per-day reduction the nation announced in October for which President Joe Biden said there would be “consequences.”

Iraq said it will reduce daily production by 211,000 barrels, the second-biggest cut, followed by the United Arab Emirates (144,000), Kuwait (128,000), Kazakhstan (78,000), Algeria (48,000) and Oman (40,000).

Russia’s Deputy Prime Minister Alexander Novak said Moscow will extend a voluntary cut of 500,000 until the end of the year, state news agency Tass reported. Russia announced the reduction in February after Western countries imposed price caps.

By Sunday evening, the U.S. price of oil traded just above $80 a barrel, according to AAA — The Auto Club Group, which noted that benchmark had not been breached since early March. That price hike alone represents a 13-cent jump at the pump.

The most expensive metro market in Florida is West Palm Beach-Boca Raton, where gas costs $3.64 per gallon on average, followed by Naples ($3.54) and Port St. Lucie ($3.53).

The cheapest gas can be found in Crestview-Fort Walton Beach ($3.21), Panama City ($3.23) and Pensacola ($3.27).

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The Associated Press contributed to this report.