Florida gas prices reach new 2023 peak

Gas prices in Florida surged 18 cents in the average cost per gallon last week, although they now appear to be on the decline.

Motorists across the Sunshine State have paid more for gas for four consecutive weeks through Friday, when the price hit $3.84 per gallon —12 cents more than the previous yearly high in April.

By Sunday, pump prices averaged $3.83 per gallon. Just over a month earlier, on Independence Day, gas here was 57 cents cheaper per gallon.

Prices dropped another cent by Monday morning, according to AAA — The Auto Club Group, but still remained the highest since August 2022.

“These surging prices have been driven by a couple of factors,” AAA spokesperson Mark Jenkins said in a statement. “Extreme temperatures along the gulf coast (have) kept refineries from operating at full capacity. Globally, oil prices are significantly higher than a month ago, as OPEC production cuts cause global oil supplies to tighten.”

Oil prices determine roughly half the price per gallon of gasoline, AAA said, and tracking the rate at which oil barrels trade is a good way to determine whether fuel expenses will rise or fall in the near future.

On Friday, oil prices closed at about $82.81 per barrel, just 45 cents below this year’s high.

When gas prices were lower this time last month, crude oil traded at about $70 roughly a month after Saudi Arabia, the world’s largest oil producer and the most influential member of OPEC, declared plans to reduce production by another million barrels daily.

Several OPEC producers announced two months earlier a combined reduction of 1.66 million barrels per day until the end of the year, a move the Saudi Energy Ministry called a “precautionary measure” meant to stabilize the oil market.

Meanwhile, record heat in the south has hampered full-capacity production at fuel refineries, which already generate “incredible heat” while operating, AAA said. When outside temperatures exceed 100 degrees, refineries can suffer breakdowns and equipment failures.

Jenkins said some factors could alleviate upward pressure on fuel prices. Another “major wild card” could prompt another spike.

The U.S. Energy Information Administration reported improvements in refinery operations. Gas demand is expected to soon decline as the new school year commences. Still on the horizon, however, is the busiest time of the year for waterborne storms.

“Drivers should expect continued volatility at the pump during the coming months, particularly as we approach peak hurricane season,” Jenkins said.

“The majority of Florida’s gasoline is supplied by refineries along the Texas, Louisiana and Mississippi coastlines. Gas prices could spike just based on the mere threat of a hurricane making landfall in this region. How high gas prices go from there — and for how long — would then be based on whether those refineries suffered any long-term damage.”

The most expensive metro market in Florida for motorists remains the West Palm Beach-Boca Raton area, where drivers and motorcyclists are shelling out $3.96 per gallon of gas on average. Homosassa Springs ($3.91 per gallon) and Naples ($3.90) are the second- and third-priciest areas.

The cheapest gas is in the Crestview-Fort Walton Beach area, where pump prices averaged $3.58 per gallon, followed by Pensacola ($3.59) and Panama City ($3.62).