Florida gas prices rise 10 cents as demand surges

Image via Drew Dixon.

Gas prices in the Sunshine State rose 10 cents per gallon last week to the highest daily average since mid-May amid rising demands as motorists take to the road for summer trips.

Sunday’s state average was $3.46 per gallon, up from $3.36 per gallon June 5, when AAA — The Auto Club Group predicted pump prices may surge due to another round of oil production cuts by Saudi Arabia.

Oil prices sit at around $71 per barrel, $1 less than last week and around $14 cheaper than this year’s high. Prices declined last week too, despite efforts from Saudi Arabia and its OPEC partners to boost prices by extending production cuts that were set to expire this year. In Saudi Arabia’s case, that meant pledging to cut production of an additional 1 million barrels daily beginning in July.

Mark Jenkins, spokesperson for AAA, attributed the gas price increase in Florida and across the U.S. — which saw 4-cent uptick, week over week — to the “roaring start” of summer driving season.

“Gasoline demand figures from the past few weeks have been stronger than what we saw during this same time last year,” he said in a statement.

“That has contributed to volatility at the gas pump, which is perfectly normal this time of year. The good news for drivers is that oil prices remain low. As long as that’s the case, the state average should remain below this year’s high of $3.72 per gallon.”

The most expensive metro market in Florida was, once again, the West Palm Beach-Boca Raton area, where drivers paid $3.62 per gallon on average. Naples ($3.52 per gallon) and Port St. Lucie ($3.51) were next-priciest.

Florida areas with the most affordable gas included Crestview-Fort Walton Beach ($3.18), Pensacola ($3.22) and Panama City ($3.22).

Nationwide, Florida is in the middle of the pack in terms of gas prices.

Mississippi is the only state with gas cheaper than $3. Meanwhile, eight states — Alaska, Arizona, California, Hawaii, Nevada, Oregon, Utah and Washington — have pump prices between $4.03 and $4.90.