Florida gas prices hit 11-year Labor Day high

Image via Paul Brennan of Pixabay.

Florida gas prices on Labor Day cost more this year than in the past decade, despite declining 11 cents per gallon over the preceding two weeks.

On Monday, the state average price for regular gasoline was $3.70 per gallon, down from $3.81 on Aug. 21.

The last time fuel costs were that steep on Labor Day was in 2012, according to AAA — The Auto Club Group, which found the cost dipped further to $3.68 per gallon by Tuesday morning.

“Although gas prices have recently declined, Florida drivers paid the most expensive Labor Day gas prices since 2012,” AAA spokesperson Mark Jenkins said in a statement. “Where pump prices go from here is unclear, because oil and gasoline futures prices are moving in opposite directions.”

Gasoline futures fell nearly 20 cents last week as production of the more costly summer blend gas tapered off and expectations of lower post-Labor Day fuel demand neared. Meanwhile, the U.S. price of oil jumped to a new 2023 high, with WTI grade selling at $85.84 per barrel Monday — more than 7% higher than the week before and the most expensive daily settlement since December.

Market observers attribute the upswing to reports that Saudi Arabia plans to extend its voluntary oil output cut of 1 million barrels per day through the end of the year. On Tuesday, Russia also extended its voluntary reduction of oil exports by 300,000 through Dec. 31.

The most expensive metro markets in Florida for motorists to refuel is the West Palm Beach-Boca Raton area, where gas costs about $3.85 per gallon, followed by Naples ($3.80) and Gainesville ($3.79).

The three least expensive markets are Pensacola ($3.47), Crestview-Fort Walton Beach ($3.47) and Panama City ($3.52).

Compared to the rest of the country, Florida drivers and motorcyclists are still getting a bargain. The national average for gas Monday was $3.81 per gallon, with the highest pump prices being in California, where motorists are paying $5.33 per gallon.

Gas is cheapest in Mississippi at $3.29 per gallon.